Sanctions shatter Russia’s financial system; Kremlin says economic reality has changed

Kremlin spokesman Dmitry Peskov has said the economic reality has changed significantly for Russia following a raft of sanctions imposed in the wake of the country’s invasion of Ukraine.

The spokesperson’s comments come at a time when several sanctions from the EU and the US shattered Russia’s financial system and triggered a spiral in the Ruble. 

“The economic reality has changed significantly. Now it’s important to take actions that minimize the consequences. We will do what is in our interests,” said Peskov, the Wall Street Journal reported. 

The Russian Ruble faced a substantial setback on Monday, Feb. 28, as it fell as low as 111 to the dollar from 83 on Friday. 

In an attempt to protect Russia’s banking system and attract savings, the Bank of Russia soon raised benchmark rates to 20 percent from 9.5 percent. 

Earlier, the EU, US, UK, and Canada had announced several sanctions, including cutting some Russian banks off the SWIFT payment system.