Russian bank admits: It may take 10 years to return to pre-sanctions levels

The economy of Russia it may take a decade to return to pre-sanctions levels in 2021, the CEO of the country’s largest bank, Sberbank, admitted on Friday, as financial constraints have cut the country in half by its trade.

The statements were made by German Gref, at the time Vladimir Putin posted a picture of a strong Russia in a forum, threatening the West for the sanctions it imposed.

Western countries have imposed economic sanctions on Russia, the harshest it has faced in its modern history, after Moscow sent its troops to Ukraine on February 24, calling it a “special military operation.”

Russian assets suffered an immediate blow and consumer prices soared, forcing authorities to introduce capital controls, raise key interest rates and limit the ability of foreign investors to sell their assets in Russia.

German Gref, whose bank considered as a substitute for the Russian economy, As it holds the majority of household deposits and business loans, it estimated on Friday that the countries that hit Russia with sanctions accounted for 56% of its exports and 51% of its imports.

“This is a threat to the 15% “The bulk of the economy is on fire,” said Gref, a former finance minister, at the World Economic Forum in St. Petersburg.

“As a result – and if we do nothing – it will take about a decade to return to the levels of the economy of 2021, “said Gref, stressing the need for structural reform of the Russian economy.

Sanctions imposed on Russian banks have severely curtailed financial transactions with foreign banks, and Russia has been unable to import equipment and spare parts needed for the automotive, energy and aviation industries.

According to Gref, shipments fell by six times, while sea freight and air transport also suffered consequencesas sanctions do not allow Russian airlines to fly to the West while Russian-flagged ships have been barred from entering EU ports.

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