Kremlin: The economic reality has changed, we have confidence in the central bank

The Kremlin announced today that the economic reality had changed but sees no reason why it should question the effectiveness and credibility of the central bank, which raised interest rates to 20% as it tries to shield the economy from unprecedented Western sanctions.

The bank has also imposed capital controls as the West seeks to limit its ability to develop $ 640 billion in foreign exchange and gold reserves and cut off Russia’s major banks from the SWIFT system, making it difficult for banks and businesses to make and receive payments.

These moves have sent the ruble to a record low.

“The economic reality has changed significantly,” said Kremlin spokesman Dmitry Peshkov.

“These are heavy, problematic sanctions, but Russia has the ability to compensate for the damage. Russia has been making plans for possible sanctions, even the most severe ones, for a long time. There are reaction plans, they have been developed and implemented as problems arise.” , stressed Peshkov.

Peshkov also stressed that the sanctions imposed on President Putin were pointless.

“Sanctions against Putin are quite indifferent. They also include absurd allegations about some assets. The president has no assets beyond what he has stated,” the Kremlin spokesman said.

He added that the Russian president will deal with financial issues today, and will meet with officials including Central Bank Governor Elvira Nabiullina, Finance Minister Anton Siluanov, and Sberbank CEO.

Asked about the handling of the crisis by the central bank, Peshkov stressed that ‘we have no reason to doubt the efficiency and credibility of our central bank. “There is no reason to doubt that now.”