New Western sanctions leave Russian banks paralyzed
At least two Russian banks are grappling with serious problems, causing customers to be unable to withdraw their deposited funds. Early this morning, new sanctions came into effect, almost cutting the Russian financial system off from access to Western currencies.
Early this morning, new sanctions imposed by the West on Russia began to take effect. As a result, Russian companies were practically cut off from easy access to euros and dollars.
The Russian authorities assured that funds deposited in foreign currencies by ordinary citizens are safe, but these reassurances did not seem to calm consumers. Early this morning, reports of long bank lines appeared on social media. Commentators now report that at least two banks prevent customers from accessing their funds.
Russians cut off from money: Problems with two banks
According to the Visegrád 24 portal, Russian bank Rosbank is experiencing serious difficulties—its website has ceased functioning, and customers cannot log into their accounts. Similar issues are also affecting other Russian banks, which are blocking access to their customers due to a lack of sufficient financial liquidity to disburse their money. This situation is attributed to the new sanctions imposed by the United States.
Jason Jay Smart, via X, reported that after Rosbank, Gazprombank is also preventing customers from logging into their accounts. He claims that Russian banks are trying to prevent a digital "bank run" as customers aim to withdraw all their deposits.
The West hits Russia
Technical problems and lack of financial liquidity in Russian banks are not the only consequences of Western sanctions. The American restrictions also hit the Russian stock exchange, forcing it to suspend some operations shortly after the MOEX stock index managed to return to pre-war levels.
The sanctions have triggered a reaction among Russian entrepreneurs and stock investors. Stocks listed on the Russian stock exchange are experiencing a real collapse, with their prices dropping by as much as 15%. Therefore, Western restrictions have had very serious consequences for the Russian economy and the financial stability of the country. According to Reuters, exporters have been almost cut off from access to currencies. "Obtaining dollars and euros is practically impossible," said one of them in an interview with reporters.
