Russia admits it has felt the impact of Western sanctions

Elvira Nabiullina, Governor of the Central Bank of Russia, said that the tightening of Western sanctions against the country is affecting Moscow's oil export revenue.

Ms Nabiullina said that after a decline at the beginning of the year, exports had recovered thanks to rising oil prices. International crude prices have risen more than 10% this year. However, Western sanctions have hampered the recovery.

Russia’s economy has remained resilient more than two years after the Russia-Ukraine conflict and amid Western trade sanctions. The energy giant has maintained its fuel exports by turning to alternative markets such as India and China.

However, some Chinese banks have recently suspended payments from financial institutions sanctioned by the West, and other global banks that Russia uses to avoid sanctions have also gradually backed away for fear of Western retaliation.

Nga thừa nhận đã ngấm đòn trừng phạt của phương Tây - 1 — Governor of the Central Bank of Russia Elvira Nabiullina (Photo: Reuters).

Russia’s close trading partner India is also struggling. Indian refineries have stopped accepting Russian crude delivered on tankers operated by Sovcomflot, Russia’s largest commercial shipping company, which has been hit by US sanctions.

This is likely to have a major impact on the Russian economy as India has been one of Moscow's largest oil importers since the conflict broke out.

Oil companies are having to inspect all tankers to ensure they are not operated by entities sanctioned by the US. The inspections have also disrupted the shipment of Russian crude by other vessels.

This has also forced many Russian ships to wait for weeks off the Indian coast with no clear timeline on when they can deliver their cargo.

In that context, Ms. Nabiullina hinted that Russia would step up efforts to overcome sanctions.

"Due to sanctions, Russia will certainly face difficulties in making cross-border payments. Russian banks and companies are finding new ways to make payments with countries," the Governor of the Central Bank of Russia told TASS .

Source