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Vladimir Putin stands during a press conference.
Russian President Vladimir Putin.Photo by Kay Nietfeld/picture alliance via Getty Images
  • The Kremlin said Monday that Western sanctions have changed the reality of the Russian economy.

  • The Russian ruble crashed and the central bank doubled its base interest rate.

  • Western sanctions were heavy and problematic, but could be countered.

The Kremlin said Monday that Russia's economic reality had changed in the face of Western sanctions.

Russia's ruble plunged 30% against the US dollar and the central bank doubled its base interest rate. Russians were waiting in long lines to withdraw money.

Western nations have imposed sweeping sanctions on Russia after it attacked Ukraine, such as cutting off Russian banks from Swift, the international bank payment system, and freezing assets linked to President Putin.

The CEO of Sberbank, one of the country's leading lenders, will be meeting with Putin, as well as Russia's top central banking and finance officials. An emergency meeting was described by an FT reporter.

The potential to offset the harm caused by the West's sanctions was said to be by Russia. He said that the economic reality has changed. These sanctions are problematic.

Russia has been making plans for possible sanctions for a long time. There are response plans that have been developed and are being implemented.

He said that they had no reason to doubt the central bank's effectiveness. There is no reason to doubt it.

Peskov said that Putin was quite indifferent about the sanctions.

Sberbank's European operations are failing or likely to fail, according to the European Central Bank.

Sberbank's European operations experienced significant deposit outflows as a result of the impact of geopolitical tensions. This led to a decline in its cash position. There are no available measures with a realistic chance of restoring this position at group level and in each of its subsidiaries within the banking union.

Insider is covering the developments of the invasion on their live blog.

The original article is on Business Insider.

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