The Kremlin has downplayed the possibility of new EU sanctions on the Russian banking sector, saying that major Russian banks have long been operating under restrictions and yet continue to generate profits, Reuters reported, quoted by BTA.
The EU has proposed a new package of sanctions against Russia over the war in Ukraine, targeting mainly the banking sector and cryptocurrency networks, with the aim of weakening the country's financial system.
"Our largest banks have been under sanctions for a long time. This does not prevent them from generating significant profits, developing and maintaining a high level of stability," Kremlin spokesman Dmitry Peskov said in response to a question about whether the sector would be able to cope with the new restrictions.
He also recalled Russian President Vladimir Putin's words that the overall state of the Russian economy remains under control. "The same applies to the banking sector. The Central Bank has repeatedly emphasized this. It is monitoring the situation very closely and is taking the necessary measures to maintain stability," Peskov added.
Despite the Kremlin's assurances, sanctions, high interest rates and significant military spending are putting pressure on the Russian economy, estimated at around $3 trillion. In the first quarter, it shrank by 0.3%, marking the first quarterly decline since the beginning of 2023.