Huge queues at ATMs for cash withdrawals

Effects of sanctions on Russia

Big crowd for purchasing basic goods

Price hike on everything

Moscow (Russia) – 7 days since Russia invaded Ukraine, Russia has not been able to win. On the other hand, economic sanctions have been imposed on Russia from all over the world. Russian bank accounts have been frozen. Consumers are facing a lot of difficulties. Russian currency crashed to a record low. From the rich to the poor in Russia, everyone is running out of money. Edible oil prices have gone up. Russian people are suffering due to all of this. Therefore, Russian citizens are queuing outside ATMs to withdraw money.

NATO countries, including the United States, have frozen the assets of Russia’s Central Bank. Russia is facing an economic crisis. The United States has said it will block direct investment in Russia. Russia has lost 6 billion so far. Russian citizens are withdrawing money as the sanctions could lead to a recession in Russia.

Before the war in Russia, 75 rubles were worth 1 dollar; but it has declined because of the war. People now have to pay 113 rubles for 1 dollar. As a result, prices of everything from food to fuel have skyrocketed. Unemployment is expected to rise in Russia shortly and the market will soon run out of supplies. So, the Russians are rushing to buy the essentials.

To address the economic crisis, Russia has imposed restrictions on remittances to its citizens. Exporters have been ordered to convert 80% of their earnings into rubles. The interest rate on term deposits has been changed from 9.5% to 20%.

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