One by one, Russia's state-run banks are feeling the brunt of new sanctions.
Moscow, Russia
© Vida Press

The US and EU-imposed measures are designed to hurt the Russian economy, but economist Alexei Devyatov says the impact will be minimal.

"The sanctions' effect is not going to be catastrophic for the Russian economy. At this point, there is huge uncertainty regarding the companies that will be affected by sanctions and what are the exact transactions that will fall under restriction," says Devyatov, Uralsib Chief Economist.

The EU and the US unveiled the sanctions Tuesday as punishment for Russia's Ukraine policy.

The measures also restrict sales of arms and equipment for Russia's oil industry.

But the Kremlin says the sanctions as "destructive and short-sighted".

Still, Moscow residents appear resilient. Some are even optimistic.

Olga, a resident of Moscow, says: "We lived in tougher conditions, and our lives were peaceful and friendly. Who cares if we have just one fur coat and not three?"

And Russian markets are unmoved, investors brushing off the sanctions as far less severe than feared.

Reuters
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