Russia Admits 'Shock Impact' On Economy Following Global Sanctions Over Ukraine Invasion

KEY POINTS

Russia is currently taking measures to stabilize its economy
Kremlin's economy may take a further hit as the U.S. bans Russian energy imports
The EU said it will cut two-thirds of its natural gas imports from Russia

The Russian government has admitted that its economy is experiencing a “shock impact” following the sanctions it received from the United States and other Western countries over its invasion of Ukraine.

Speaking during a conference call with reporters Thursday, Kremlin spokesman Dmitry Peskov said Russia’s economy is turbulent, but added that they are taking measures to stabilize it.

"Our economy is experiencing a shock impact now and there are negative consequences, they will be minimized," Peskov said, adding: "This is absolutely unprecedented. The economic war that has started against our country has never taken place before. So it is very hard to forecast anything."

Many Western countries have imposed severe economic sanctions against Russia after President Vladimir Putin on Feb. 24 announced a special military operation in Ukraine. Over the past few weeks, the value of the Russian ruble has lost about 40% of its value against the U.S. dollar. On Feb. 23, one U.S. dollar equated to 81.33 rubles. On March 9, it was 139.13 rubles per U.S. dollar, according to an analysis by The New York Times.

Russia’s economy may take a further hit after President Joe Biden this week announced that the United States was banning Russian energy imports, which is one of the country’s largest sources of income.

"The United States produces far more oil domestically than all of Europe and all the European countries combined," Biden said. "So, we can take this step when others cannot, but we are working closely with Europe and our partners to develop a long-term strategy to reduce their dependence on Russian energy as well."

European countries have so far held back on taking similar actions. However, the European Union this week said it is looking to cut two-thirds of its natural gas imports from Russia within the year.

Peskov’s conference call came as Russian forces continued to bombard the port city of Mariupol Thursday, a day after an airstrike killed three people at a maternity hospital. Throughout the city, the Russian bombings have killed approximately 1,207 Ukrainians. However, officials say the figure only accounts for bodies collected on the street, noting that they do not know the official death toll.