Central Bank Ties Sanctions to Payments, Assets, and Market Reactions
The Governor of the Central Bank of Russia, Elvira Nabiullina, highlighted a core challenge arising from the sanctions connected to the start of the military operation: the blockage of international payments and the freezing of private assets. She conveyed these concerns during an interview with RBC. Source: Central Bank of Russia
Nabiullina noted that the bank had been evaluating the risk landscape since 2014, and the institution had largely sharpened its resilience against most anticipated measures. Source: Central Bank of Russia
She described the freezing of Russia’s official reserves as a profoundly negative signal for global central banks, underscoring that such actions undermine fundamental principles of reserve management. The central bank leader pointed to the exchange rate regime and currency controls introduced in early 2022 as important tools that aided the institution in navigating those pressures. Source: Central Bank of Russia
According to Nabiullina, the most persistent problem remains international payments. Despite ongoing efforts to resolve the issue, cross‑border transactions continue to face obstacles, and the freezing of assets belonging to private individuals has become a painful consequence for many people who are not subject to sanctions yet find themselves with blocked funds. Source: Central Bank of Russia
The head of the Central Bank did not dismiss the possibility of increased sanctions pressure. She explained that the bank is modeling such a scenario to prepare for any future financial stress. Source: Central Bank of Russia
Earlier discussions noted that there was a debate about whether the key rate should have been raised earlier in the spring to better absorb emerging shocks. Source: Central Bank of Russia
There have also been remarks from government officials emphasizing caution against premature optimism about the economic outlook amid ongoing sanctions. Source: Central Bank of Russia