Key facts
- The EU has proposed a new package of sanctions against Russia, targeting its banks and crypto networks.
- Kremlin spokesman Dmitry Peskov stated that Russian banks have long operated under sanctions and continue to be profitable.
- Peskov asserted that the banking sector's stability is maintained by the central bank.
- Russia's economy contracted by 0.3% in the first quarter of the year.
The Kremlin has dismissed the potential impact of new European Union sanctions targeting Russian banks, asserting that the country's financial institutions have long operated under existing restrictions without hindering their profitability or stability. Dmitry Peskov, Kremlin spokesman, told journalists that the largest banks are accustomed to sanctions and continue to earn significant profits and maintain stability.
Peskov referenced comments made by President Vladimir Putin, who stated that the overall economic situation in Russia is under control. He added that the central bank is closely monitoring the situation and implementing necessary measures to ensure stability within the banking sector.
Despite these assurances, Russia's economy has faced challenges. It contracted by 0.3% in the first quarter, marking the first quarterly decline since early 2023, attributed to sanctions, high interest rates, and war spending.