“We were ready for this to happen.”
Central Bank Governor Elvira Nabiullina spoke in an interview with RBC, noting that since 2014, when sanctions began, ministry experts have continually assessed sanctions risks. The takeaway: preparation mattered.
“So when the big banks, for example, came under sanctions, they were already largely prepared for that to happen,” the regulator’s head explained.
The governor added that the initial impact hit the financial sector, yet overall financial stability could be maintained.
She described the most painful sanctions as the disconnection from SWIFT and the freezing of foreign assets, but emphasized resilience. A national payment infrastructure was gradually built since 2014 to counter potential disruptions.
Regarding asset freezes, the combination of a floating exchange rate and currency controls introduced in spring 2022 helped mitigate pressure. Nabiullina called those measures quite harsh but effective.
“We diversified our reserves and increased the share of yuan and gold,” Nabiullina stated.
Sanction Destroyer
The Central Bank head asserted that Russia’s economy is undergoing rapid structural adjustment, spurred by its market-based approach and the ability of businesses to adapt quickly to new realities.
“In the financial sector, we have managed to respond to the main challenges, but some problems remain, including cross-border payments,” she noted.
Nabiullina also commented on Russia’s handling of sanctions, including coverage in Politico naming her “destroyer of the year.” She refrained from commenting on that specific headline.
“Of course, there is a temptation to think that 2022 was exceptionally favorable and now we are deeply immersed in the consequences. Still, preparations for growing sanctions pressure must continue,” she emphasized.
Last week, multiple expert assessments echoed her view. Boris Titov, commissioner for the protection of entrepreneurs’ rights, told RIA News that almost 60 percent of business owners believe the economy is developing stably, while about 40 percent say they are expanding their activities.
At a December 21 meeting of the Council for Strategic Development and National Projects, Deputy Prime Minister Andrei Belousov stated that the country has preserved its export potential, adding that the initial results of the year show the economy adapting to sanctions pressure. The head of state also noted that Russian companies continued their business rhythm despite the sanctions and that the economy is adjusting to changing external conditions.
Vladimir Putin highlighted in a separate address that, despite sanctions, firms maintained momentum and the economy progressed through the adaptation process.
Economy in Wartime
On the day the central bank chief’s interview appeared, American entrepreneur Elon Musk underscored the link between economic strength and military capability on social media, saying that economic power underpins military action.
There were further remarks about the U.S. F-35 program facing supply constraints and costly components. Analysts noted that defense industry dynamics are closely watched in markets under sanctions.
On December 19, Russian Defense Minister Sergei Shoigu reported that since the start of the special military operation, defense industry capacities have expanded significantly. He cited a quadrupling of capabilities in military production and a 17.5-fold increase in artillery ammunition output, with weapon supplies tripling. Shoigu also claimed that Russia remains capable of producing more advanced technology weapons than some NATO members.