BY: Harrison Brown
The Russian ruble fell to record lows as heavy economic sanctions set by President Joe Biden went into effect this week.
The sanctions targeted primarily at Russian oligarchs, are in response to Russian president Vladimir Putin’s invasion of Ukraine.
Joe Biden in a White House address said that these sanctions have been purposefully designed to maximize the long-term impact on Russia and to minimize the impact on the United States and our Allies.
Russian banks were cut off from SWIFT, Europe’s primary banking system, and in response the Russian ruble plummeted.
Large companies have voiced their opinion with their invasion by pulling their business out of Russia entirely.
These large companies include Ikea, Apple, Nike and many others.
People were seen at Ikea in Moscow scrambling to buy the last of what they can afford before the store is shut down and the ruble falls even more.
Russian citizens were also seen lining up in ques at banks trying to withdraw as much money as they could.
Many citizens were turned away after ATM’s ran out of cash.
Russian banks have started to turn to Chinese banking systems after the touch economic sanctions.
Mastercard and Visa joined the list of banks to cut off Russia making it impossible for Russians outside the country to spend any money abroad.
“Over the past few days, 200-300 companies have approached us, wanting to open new accounts,” said the person who works at the Moscow branch of a Chinese state bank and has direct knowledge of its operations.
Russia and China are seen as allies in the geo-political world with a complicated history but always maintaining good trading relations.
China voted to abstain from on the UN security council that condemned the Russian invasion onto Ukraine territory.
North Korea, Eritrea, Syria, Belarus, and Russia also voted against the resolution.
There is not no doubt that these economic sanctions will have a long-lasting impact on the Russian economy.