MOSCOW —
Black market fears, problems with online payments, and the looming specter of
inflation — Russian officials are scrambling to deal with the effects of
sanctions imposed on Russia over its military intervention in Ukraine.
اضافة اعلان
On the streets of
Moscow, there is little
sign of panic — restaurants are open and busy during an extended state holiday
that will last through March 8 when the country marks International Women's
Day.
But at ministries and banks, there is
growing concern over economic fallout that has seen giant international
companies flee Russia and questions raised over the health of the banking
sector.
The central bank in recent days has taken
unprecedented measures, including capital controls, to shore up the struggling
economy and Russia's ruble.
The national currency has shed around a
quarter of its value against the US dollar since what the
Kremlin has dubbed
"a special military operation" in Ukraine began on February 24.
The tanking ruble has revived memories of
financial turmoil of the 1990s, when millions of Russians saw their savings
evaporate due to currency devaluation and soaring inflation.
Emerging black market
For the moment, ensuring basic goods remain
affordable and abundant is a key target for authorities.
The
trade and industry ministry on Saturday
raised alarm over cases of essential foodstuffs being purchased "in a volume
clearly larger than necessary for private consumption...for subsequent
resale," pointing to an emerging black market.
To combat bulk buying, major retailers have
decided via their trade organizations to limit the amounts of essential
foodstuffs that can be purchased by individuals at any one time, the ministry
said in a statement.
Russia may also decide to cap the prices of
around 20 basic foodstuffs — meat, fish, milk, flour, sugar, oil, cereals,
butter, rice, bread, cabbage, carrots, onions, and potatoes — as an additional
anti-inflation measure.
So far the government has not taken any
steps in this direction.
But analysts warn that rising prices are
already a reality, even if there are no government statistics to reflect the
trend.
Catering groups interviewed by Russian
journalists reported considerable price increases among their suppliers, even
for local products.
A meeting with Moscow City Hall was
scheduled for Wednesday.
Better carry cash
In another sign of looming difficulties, the
central bank has asked lenders not to release their financial statements as of
February.
The move was necessary "to limit the
risks of credit institutions associated with the sanctions imposed by Western
countries," the
Bank of Russia said on Sunday.
The first days after Western sanctions were
announced saw long queues emerge at ATMs in Moscow and other cities.
Now analysts fear that any questions about
the financial health of individual banks could trigger a banking panic.
In a further blow, the EU this week cut
seven Russian banks from the SWIFT payment system, while Mastercard and Visa
announced on Saturday that they were suspending their Russia operations.
As the two Western payments giants quit the
market,
China seems poised to take their spot as a number of Russian banks
announced plans to issue cards using the Chinese UnionPay system.
The country's largest private lender Alfa
Bank said Sunday it was "already working on launching cards on UnionPay,
China's national payment system", with Russia's top bank, Sberbank,
issuing a similar statement.
Russia's central bank said that
Visa and Mastercard cards already issued by national banks will continue to work within
Russia until their expiry, since all payments in Russia are made through a
national system.
However, it warned that Russians travelling
abroad would need to carry cash.
Read more Business
.jpg)
.jpg)
