US sanctions hit Russian markets as ruble plummets

The United States announced a broad package of sanctions on Wednesday targeting Vladimir Putin's "war machine." The new restrictions affected the Moscow Stock Exchange, which responded by suspending trading in U.S. dollars and euros. "The ruble is collapsing," proclaimed "The Kyiv Post."

"Due to the introduction of restrictive measures by the United States against the Moscow Exchange Group, exchange trading and settlements of deliverable instruments in US dollars and euros are suspended," stated the Bank of Russia after announcing the new sanctions package against the Russian Federation.

The communique added, "companies and individuals can continue to buy and sell US dollars and euros through Russian banks." The Bank of Russia assures citizens that funds in these currencies are safe, but the sanctions have caused considerable unrest.

"In St. Petersburg, Russia lines are forming at money changers after the news broke about the new US sanctions that caused the suspension of currency trading on the Moscow Exchange," wrote "The Kyiv Post" correspondent Jason Jay Smart. "The ruble is going bust," he added in a post on platform X.

The U.S. sanctions, announced before the G7 summit, aim to significantly increase the risk of secondary sanctions for entities conducting business with Russian banks, the arms industry, and other vital economic sectors. This also applies to China, which plays a significant role in circumventing existing restrictions.

The restrictions from the United States are not Russia's only new problem. The G7 leaders agreed to pay Ukraine $50 billion using the profits from frozen Russian assets in the European Union and G7 countries, which are valued at approximately $320 billion, as stated by AFP on Wednesday.