Putin says the West's 'economic blitzkrieg' has failed — but Russia's central banker warns the country's reserves can't last forever

The period when the economy can live on reserves is finite, according to the Russian central bank governor.

Russia cannot use half of its foreign exchange reserves because of sanctions imposed by the US, Europe and other nations. The country is holding mostly Chinese currency and gold.

Nabiullina told Russia's Members of Parliament that the country's financial market had been mostly impacted by the Western sanctions.

The main problems will be associated with restrictions on imports and the future with restrictions on exports.

She said Russian firms need to find new business models, partners, and switch to the production of products of previous generations to adapt.

The mayor of Moscow warned that 200,000 city residents could lose their jobs as Western companies leave the economy due to sanctions and corporate boycotts against Russia.

Even as the country's offers appear to be holding up, the comments from the Russian officials came. The US Treasury blocked the country from paying its foreign debt until April 4, when Russia paid it in rubles. Thanks to Russia's strict capital controls, the ruble has bounced back to prewar levels.

The World Bank said in a report that the Russian economy is expected to contract by 11.2% in 2022.

Putin was unperturbed by the negative news.

The West wanted to cause panic in the markets, the collapse of the banking system, and a large-scale shortage of goods in stores in order to undermine the financial and economic situation in Russia.

He said that the policy towards Russia has failed, and that the economic strategy has failed.