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
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Lithuanian agrimin to discuss post-Brexit agriculture funding issues in Austria

Lithuanian Agriculture Minister Giedrius Surplys will on Monday attend an informal meeting of EU...

Lithuanian president calls for avoiding chaotic Brexit

Attending an informal meeting of EU leaders on Thursday, Lithuanian President Dalia Grybauskaitė...

Lithuania proposes to create single set of external border standards in EU

President Dalia Grybauskaitė presented Lithuania's initiative to introduce a single set of external...

Europe needs lasting solutions to counter illegal migration - president Grybauskaitė

The European Union remains the center of attraction for economic refugees seeking a better life...

Lithuanian president, EU leaders to discuss Brexit, migration in Salzburg

Lithuanian President Dalia Grybauskaitė is leaving for the Austrian city of Salzburg where she will...