Dmitry Peskov: the Russian economy will withstand the sanctions' blow

Dmitry Peskov: the Russian economy will withstand the sanctions' blow
Dmitry Peskov: the Russian economy will withstand the sanctions' blow
2 March, 16:04EconomyPhoto: Александр Щебрак / ТАСС
Press Secretary of the President of the Russian Federation Dmitry Peskov said that under the pressure of new Western sanctions, the Russian economy is now experiencing a serious blow, but, according to the official, it will not be fatal for the country.

According to Peskov, the Russian economy has a sufficient margin of safety in order to “stand on its feet” despite the crisis.

“The Russian economy is now under serious pressure, under a serious blow, I would say. But there is a margin of safety, there is a potential, there are plans. Energetic work is underway. We will stand on our feet”, - TASS quotes Peskov’s statement.

Earlier, according to Peskov, Russia has experienced economic crises more than once, and the country has gained sufficient experience in countering difficulties, including those associated with rising unemployment.

Peskov called the hostile actions of Western countries the reason for the new problems. The Kremlin's protective measures are needed to reduce the consequences of financial risks for the entire country.

Earlier it was reported that President Putin issued a decree according to which the financial authorities will stop the leakage of currency from Russia. Exporting enterprises are required to sell 80% of foreign exchange earnings from January 1, and Russian residents from March 1 will not be able to transfer euros and dollars to foreign accounts.

In addition, the Russian authorities have decided to temporarily limit the possibility of foreign business exiting Russian assets. According to Prime Minister Mikhail Mishustin, restrictive measures are being taken in order to minimize the damage caused by Western sanctions to the Russian economy. According to Mishustin, now many Western businessmen "are forced to be guided not by economic factors, but by making decisions under political pressure". As part of this policy, the Central Bank issued an order that requires brokers not to execute instructions from non-residents to sell securities.

Since March 2, President Putin has banned Russians from taking abroad cash in excess of 10,000 US dollars.

The presidential decree "On additional temporary economic measures to ensure the financial stability of the Russian Federation" was signed "in connection with the unfriendly and contrary to international law actions of the United States and foreign states and international organizations that have joined them". These unfriendly actions, according to the Kremlin, are associated with the introduction of restrictive measures against citizens of the Russian Federation and Russian legal entities. The decree introduces restrictions for non-residents from states "unfriendly" to Russia. From now on, they are required to obtain permission from the government commission of the Russian Federation for transactions in Russia. The transactions relate, among other things, to the provision of ruble loans to foreigners, as well as transactions "entailing the emergence of ownership of securities and real estate".

Russian President Vladimir Putin announced a military special operation in Ukraine on February 24. After that, many Western countries and companies announced serious sanctions against the Russian Federation.

Economists warn that if the situation does not return to normal soon, Russia will begin a series of plant closures, which will lead to a surge in unemployment, increased poverty and an explosion of protest moods.

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