Western economic sanctions are having a negative impact on the Russian financial sector. They have increased inflationary pressures, made it more difficult for borrowers to access the international capital markets, and weakened the Russian ruble against the U.S. dollar and the euro.
All of these results have led to the Russian government exploring ways to protect the financial sector and broader economy against sanctions – everything from the creation of a new national payment system to the launch of new currency measures to support the ruble.
Read this Brief to find out more about the impact of Western sanctions on the financial sector of Russia and how the government is responding.
The author is Ivan Kapitonov of the Russian Academy of the National Economy and Public Administration under the President of the Russian Federation.