The frank assessment of Russia’s economic problems contrasts sharply with political attacks launched against the current U.S. administration for a sanctions policy that failed to force Vladimir Putin to the negotiating table.
Presenting the CBR’s annual report to parliament this week, Nabiullina painted a picture to lawmakers of just how grim the situation was that confronted her.
Without the imposition of strict capital controls, there would have been “a series of defaults and a domino effect” throughout the financial system, she argued.
It doesn't end there, either, not by a long shot, as businesses have flashbacks to what it was like when the coronavirus pandemic hit.
“The sanctions have affected the financial market, but now they will start to impact the real economy increasingly more significantly,” the governor said.
Despite inflation surpassing 9% in February, her monetary policy committee will target a return only back to 4% for 2024.
Nabiullina said this was a natural and inevitable process as supply chains adjust to the sanctions. »