President Vladimir Putin acknowledged that Western sanctions could hurt the Russian economy. It’s a rare moment of openness: so far he’s argued that Western countries have the most to lose from sanctions because they have to pay more for energy.
“The illegal restrictions imposed on the Russian economy could indeed have a negative impact on it in the medium term,” Putin said in a televised speech reported by the state news agency TASS.
Putin explained who is harmed by sanctions
While Putin did not speak in this tone, he downplayed the impact of sanctions on the Russian economy and the state of public finances. He even argued that the Russian economy remains resilient and that sanctions hurt Western countries because they raise energy prices.
This time, Putin acknowledged that since July the Russian economy has been growing largely due to strengthening ties with “the countries of the East and the South,” possibly referring to China and some African countries. He also stressed the importance of domestic demand for the economy, saying that it is becoming the main driver of growth.
The Central Bank of Russia is in the red
The Bank of Russia published a report on the results of 2022. Net loss amounted to 721.7 billion rubles. Compared to 2021, the negative financial result increased by 27.4 times - then it amounted to minus 26.3 billion rubles, the Commonwealth calculated based on data published by RBC.
So far, the record “in the red” has amounted to 435.3 billion rubles, and this happened in 2017. Thus, 2016 was the last year when the Russian Central Bank could boast of a profit.
Last year, the total income of the Bank of Russia increased by only 1.9 percent, to 541.2 billion rubles. Interest income grew the most - by 73.8 percent, to 525.3 billion rubles. At the same time, net income from operations with securities, foreign currency and precious metals has practically disappeared, although in 2021 it exceeded 200 billion rubles.
Source: Wprost
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