CBR Governor Issues Serious Warning, Moscow Still Determined to Do This, Switzerland's Surprising Reason for Sanctions

Central Bank of Russia (CBR) Governor Elvira Nabiullina has just issued a dire warning about the country's economic situation.

Governor of the Central Bank of Russia, Ms. Elvira Nabiullina. (Source: Getty Images)

In the State Duma (the lower house of the Russian parliament), Ms. Nabiullina stated that almost all of the resources of the Russian economy have been exhausted. This is a sign that the economy is in an unprecedented difficult situation.

According to Ms. Nabiullina, the unemployment rate in Russia has now dropped to a historic low of 2.4%. This means that the labor market is having difficulty meeting the demand for human resources.

CBR survey shows that 73% of enterprises are facing staff shortages. Capacity utilization at factories has also exceeded 80%, a new record for the Russian economy.

Governor Nabiullina warned that when the economy reaches its capacity limit but demand continues to increase, this could lead to stagflation. To counter this risk, the CBR decided to raise key interest rates to control inflation.

* In this context, Russia is still determined to continue to ban food imports from many countries.

On November 29, the Russian government announced the extension of the ban on food imports from countries that have imposed sanctions on the country until the end of 2026. The ban was first introduced in 2014 and was most recently extended in September 2023, until the end of 2024.

According to Moscow's new announcement, the list of countries subject to the ban has now been expanded to include New Zealand, in addition to the previous countries such as the US, European Union (EU), Canada, UK, Australia, Norway, Ukraine, Albania, Montenegro, Iceland and Liechtenstein.

Products on the list of banned imports into Russia include meat, sausages, fish, seafood, dairy products, vegetables and many other items.

* On the same day, November 29, Russian Deputy Prime Minister Alexander Novak said that an intergovernmental committee on trade and economic cooperation between Russia and Burkina Faso will be established in the near future.

During his visit to Burkina Faso, he said: "To advance all areas of our cooperation, an intergovernmental commission on trade and economic cooperation will be established in the near future. This commission will work actively to ensure both the growth of trade and the implementation of investment projects."

Earlier, Mr. Alexander Novak also had a meeting with Prime Minister of Burkina Faso Apollinaire Kyelem de Tambela. The Russian Deputy Prime Minister said that the two countries have the potential to develop cooperation in the field of machine building, machinery supply, information technology, adding that Russia can also provide its capabilities in the field of digital public administration and tax management in relations with Burkina Faso.

* Regarding the Russian economic situation, recently, Swiss Senator Mauro Poggia of the Center Democratic Alliance party - the largest party in the country's parliament, said that Switzerland was forced to join the European Union's (EU) sanctions against Russia, because if it did not do so, the country would also become the target of sanctions by European countries.

“Switzerland is forced to join the EU sanctions against Russia because Moscow could use Switzerland as a springboard to circumvent the sanctions and Europe would be forced to impose sanctions on the country,” said Mr Poggia.

Switzerland is not a member of the EU or the North Atlantic Treaty Organization (NATO), but Bern has joined almost all European sanctions against Russia since February 24, 2022.

Source: https://baoquocte.vn/kinh-te-nga-thong-doc-cbr-dua-canh-bao-nghiem-trong-moscow-van-quyet-lam-dieu-nay-ly-do-bat-ngo-cua-thuy-sy-ve-lenh-trung-phat-295618.html