Kremlin Downplays Impact of Sanctions
Russia has taken steps to lessen its reliance on foreign goods to shield itself against the impact of international sanctions.
There will be some difficulties for Russia, but they will not be insurmountable, the Kremlin said on Friday. Due to Western sanctions, Russia is expected to expand its commercial and economic relations with Asian nations.
Russian missiles bombarded the Ukrainian capital on Friday in the face of Russian advances and Ukrainian President Volodymyr Zelenskiy's pleas to the international community for more sanctions.
Speaking for the Kremlin, Dmitry Peskov refused to address the possibility of Vladimir Putin sanctions personally.
According to him, Russia has decreased its reliance on foreign imports on purpose to avoid being subject to sanctions.
If necessary, Peskov added, "the fundamental aim was to guarantee that the country had total self-sufficiency and comprehensive import substitution." For the most part, this objective has been met.
As expected, there will be challenges, but they won't be impossible to overcome.
Russia's economics ministry said that the country has long endured sanctions and announced plans to increase trade and commercial connections with Asia to fight the Western threat.
After Russia took Crimea from Ukraine, the United States imposed sanctions on Russia. The ministry said, "We recognize that the sanctions pressure we have suffered since 2014 will now deepen.".
This has been a long time coming, thanks to the rhetoric of some of our overseas counterparts.
Analysts at Citi didn't share Moscow's optimism but acknowledged that Russia's fundamentals are strong and its energy supply is not directly affected by sanctions to date.
"Sanctions might have a very big effect," the bank said in a paper, predicting a broader market contagion.
We don't think there is enough fundamental support to sell Russian assets, but the dangers of more sanctions make taking long positions much too hazardous.
The United States and its allies intend to implement the "full range" of sanctions that have been negotiated over the previous few weeks in response to the assault on Wednesday.
"President Putin has chosen a deliberate conflict that will result in a terrible loss of life and human misery," President Biden stated in his speech. "Russia is solely responsible for the death and damage that will result from this assault, and the Unified States, its allies, and partners will react in a united and decisive manner. Russia will be held responsible by the rest of the world."
During an extraordinary session in Brussels that lasted into the wee hours of Friday morning, European Union leaders approved what they dubbed "massive" sanctions against Russia for its invasion of Ukraine. The steps are being taken in the wake of allegations that Russian forces are advancing closer and closer to the Ukrainian capital, Kyiv.
This is the second round of sanctions on Russia issued by the European Union in less than a week, after the measures imposed by the United States and other Western countries earlier this month. Export bans and immigration policies are among the measures that EU leaders said they would use to target Russia in five areas: the banking, energy, transportation, and manufacturing sectors.
President of the European Commission, the EU's executive arm, Ursula von der Leyen, stated they would have a maximum effect on Russia's economic and political elite, according to the European Commission.
According to her, "this package includes financial sanctions that restrict Russia's access to the world's most vital finance markets." "We're now aiming for 70 percent of the Russian banking sector, as well as significant state-owned firms in a variety of industries, including the military industry."
Officials claim that the sanctions will have a variety of repercussions, including the freezing of transactions from several Russian banks, the prohibition of aircraft and spare aviation parts sales, and the restriction of Russian access to critical technology.