- Kremlin said Russia will not be affected American banking crisis.
- A Kremlin spokesperson said Russia was “insured” against the fallout from the Silicon Valley Bank collapse.
- Sanctions over the Ukraine war cut Russia off from the international financial system.
It’s been a difficult week for US banks. But the Kremlin sees the bright side of things.
Russia is currently so disconnected from the global financial system that the Kremlin The collapse of Silicon Valley Bank.
Kremlin spokesman Dmitry Peskov said: “Our banking system has certain ties to several segments of the international financial system, but most are subject to illegal restrictions from Western groups.” said. TASS news agencyHe was referring to sanctions against the country over its invasion of Ukraine a year ago.
According to the press, Mr Peskov said that he was “to some extent guaranteed against the negative effects of the crisis that is currently unfolding abroad”.
By contrast, Russia, like many countries in the world, faced a credit crisis The impact of the 2008 US subprime mortgage crisis ultimately led to the global financial crisis.
As the country recovered from its recession, it began working towards its ambitious ambition to make Moscow a global financial hub. But that dream is now being dashed under widespread Russian sanctions.
International banking and accounting giants withdrew from Russia, or working on their exit About the Ukrainian War. Two days after the invasion, some Russian banks were also banned from SWIFT, a Belgium-based messaging service that allows banks around the world to communicate about cross-border transactions. The ban impedes cross-border transactions in Russia’s trade and financial system, leaving Russia economically and financially isolated. The country also faces major energy export restrictions, including a $60 per barrel oil price cap.
Still, Russian President Vladimir Putin has touted the resilience of the Russian economy, with GDP contracting by just 2.1% in 2022, according to the country’s statistics office.
Indeed, aluminum oligarch Oleg Deripaska said at the Krasnoyarsk Economic Forum in Siberia that Russia “will need foreign investors” because it is short on funds. reported by Bloomberg March 2.
“Next year we will already be out of money,” Deripaska said, according to news outlets.
The Kremlin did not immediately respond to an insider’s request for comment.