Russian officials warn of increasing sanctions pressure

Russian Central Bank Governor Elvira Nabiullina said they need to prepare for the possibility of more sanctions in the future.

In an interview with RBC (Russia) on December 25, Ms. Nabiullina warned against "complacency" even though Russia has weathered the economic storm over the past two years. She said the pressure from sanctions could increase. Therefore, Russia needs to prepare for this.

"Sanctions are very unpredictable. But we have calculated the scenario of increased sanctions pressure. This risk always exists," she said. Nabiullina said that to minimize the risk, they need to ensure macroeconomic and financial stability.

The comments come as the 22-month-old conflict in Ukraine has sparked a series of Western sanctions against Russia. Earlier this month, the European Union (EU) announced its 12th round of sanctions against Russia. The US has also tightened sanctions on the country.

Still, the Russian economy appears to be holding up. Last month, Russia's statistics agency Rosstat said preliminary estimates put the country's growth in the third quarter at 5.5% year-on-year, with a wide range of economic activities picking up, from retail sales to manufacturing to construction to agriculture . This is the second consecutive quarter of growth for the Russian economy.

Nabiullina has been the governor of the Russian Central Bank since 2013. Before that, she was the Minister of Economic Development of Russia. Nabiullina has steered the Russian economy through many shocks, from the 2008 financial crisis to the wave of sanctions imposed on Russia after the annexation of Crimea in 2014.

She assessed that the Russian economy has adapted very quickly to the sanctions and is restructuring. "The economic restructuring process is happening quite quickly. Mainly thanks to the quick adjustment of businesses," said Nabiullina.

She also acknowledged that Russia is facing many challenges, including international payments and investors' pessimism about the Russian financial market, TASS reported. However, Nabiullina is optimistic that the country's banks will still be profitable next year, contributing to the country's overall economic activity.

Ha Thu (according to RBC, TASS)

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