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Kremlin admits new “economic reality”.
STORY: Long queues in front of ATMs in St. Petersburg and other Russian cities. The people here fear that there will soon be no more cash. Because of the new sanctions that Western countries have imposed on Russian banks. “Since last Thursday, people have been running back and forth between the ATMs to withdraw money. Some are lucky, some aren’t.” Concerns also with the people in Moscow. The Russian ruble fell 18 percent against the US dollar on Monday. The central bank raised its key interest rate from 9.5 to 20.0 percent in order to slow down the drastic depreciation of the national currency. According to economists, the Russian economy is facing a slump due to Western sanctions as a result of the Ukraine war. “I haven’t saved any hard currency, let’s see what happens.” “Hard to say, so far I haven’t noticed any difference.” “Prices are rising, of course. Savings are falling and the stock markets are falling.” Russia’s presidential office has admitted that tightening Western sanctions over the Ukraine invasion are leaving their mark. Economic reality has changed significantly, spokesman Dmitry Peskov told reporters in Moscow on Monday. The sanctions are problematic. But Russia has long had plans in the drawer to be able to respond to all possible sanctions.
Russia’s presidential office has admitted that tightening Western sanctions over the Ukraine invasion are leaving their mark.