Through its massive gold reserves held in Moscow (estimated at $140 billion), the central bank may be able to avoid a total collapse. There is one thing these sanctions cannot touch-gold. To put that in perspective, the amount of money that is now outside of Vladimir Putin’s grasp is the size of Austria’s entire economy. Today, hundreds of billions of dollars and euros will remain untouchable. Sanctioning the Russian Central Bank was considered a remote possibility by senior US officials only a week ago. The G7 has done something it has never done before-frozen the assets of a G20 member. An unprecedented step, with global ramifications Brian O’Toole is a nonresident senior fellow at the Council’s GeoEconomics Center and former US Treasury Department official.
#Fallout 4 does the radio tower effect stack full#
Their bravery and skill in forestalling Moscow’s massive military advantage has bought the political space for Western nations to pull together and impose these costs on Russia knowing full well that there will be spillover to their own economies still recovering from the pandemic. While the major Western economies are taking this action, it is worth noting that this could not have happened without the bravery of the Ukrainian people in standing up to the Russian army and President Volodymyr Zelenskyy, who has rallied leaders often sympathetic to Moscow to his cause. But this is the major step that makes Russia’s economy a pariah alongside its president. Will it save Ukraine? I fear not and hope I am wrong. This is an action truly without precedent in the economic world and will have dire consequences for the ruble, inflation, and just about all other Russian economic indicators. Well, in one fell swoop, Fortress Russia is no more, and the Russian economy will pay the price. They have even called it Fortress Russia. Moscow has for months downplayed the threat of sanctions by pointing to its massive, $630 billion stash of foreign reserves as sufficient to weather the sanctions storm. SWIFT will get a lot of the immediate press from today’s announcement, but the true hammer blow is the immobilization of Russia’s foreign-exchange reserves. Our economic statecraft experts weighed in on what these new measures will mean for the the Russian economy-and how Putin will retaliate. On Saturday night, the Group of Seven (G7) nations announced a new suite of punishing economic measures against Russia for its war in Ukraine, including removing key Russian banks from the SWIFT international messaging system and imposing new restrictions on the Russian Central Bank’s ability to deploy its international reserves. FEBRU| 10:37 PM WASHINGTON, 5:37 AM KYIV The West brings down the hammer on the Russian economy
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