US Sanctions Stir Concern in Russia’s Central Bank
US Sanctions Stir Concern in...
Subscribe to Newsletter

US Sanctions Stir Concern in Russia’s Central Bank

28 June 2024
2 min.
US Sanctions Stir Concern in Russia’s Central Bank

Strangulation Sanctions

The recent US “strangulation” sanctions on foreign exchange have demonstrated their potency, causing a disruption in Russia’s payments to its allies. This has precipitated a significant drop in export volumes this year.

The US introduced smart sanctions in December, targeting banks in Russia’s allied countries, leading to severed ties with Chinese and Turkish banks. The OFAC expanded these sanctions to include ‘strangulation’ FX sanctions, sanctioning MOEX and causing the CBR to stop trading the dollar and euro on the MOEX exchange.

While the parallel over-the-counter (OTC) market continues to operate, allowing Russian businesses and individuals to buy and sell foreign currency, the sanctions have widened the spreads and complicated the settlement of Russia’s international trade deals.

The CBR has been bracing for these sanctions since their initial proposal in 2014. However, at a recent meeting, senior officials began to express increasing concern as the regulator seeks a solution.

Vladimir Chistyukhin, First Deputy Chairman of the Central Bank, voiced his concerns at the St. Petersburg Economic Forum. He stated, “We must do everything in our power to keep the wheels turning. What seemed unpopular to us yesterday swaps (including central banks), some clearing systems, the use of crypto everything needs to be tested, everything needs to be tried as quickly as possible. Because if there are no normal payments for products in foreign economic activity, for our export- and import-dependent country, it’s simply all, it’s ruin.”

Since December, the payment situation has deteriorated. An analysis of customs data by The Bell revealed a one-third reduction in imports from key trading partners such as Turkey and Kazakhstan in the first quarter of 2024.

Sanctions enforcement has escalated, with the EU banning Russia’s SWIFT alternative, SPFS, and the Bank of China’s Russian subsidiary suspending payments from Russian banks. Chistyukhin highlighted the effectiveness of ‘strangulation’ sanctions. The SPFS ban impacts countries trading with Russia and the West, potentially leading to a drop in Chinese imports and a rise in electronics prices. If imports fall, the ruble may strengthen due to reduced importer demand.

Persons1 and Companies2 in the news

First Deputy Chairman ofThe Central Bank of the Russian (CBR)
1 place
Source foto:
Rating companies
15 Mention
14 Mention
12 Mention
10 Mention
Ford Motor Company
10 Mention
JP Morgan Chase
9 Mention
White House
7 Mention


News from is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York. news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Died this year
Born this year