The Central Bank of Russia’s recently released report, “Banking Sector Development Assessment,” reveals that the Russian banking sector suffered a staggering 1.4 trillion rubles in losses during the first half of 2022.
The report revealed that the Russian banking sector closed 2022 with a profit of 203 billion rubles after having recovered in the second half of last year. Nonetheless, some banks registered significant losses; however, 77 percent were able to profit during this period.
The Russian banking sector made a profit of 2.4 trillion rubles in 2021.
West Imposing Heavy Sanctions Against Russian Banks
Eleven months ago, after Russia sent tens of thousands of its forces into Ukraine, the West took a major step in targeting the country’s financiers—it blocked access to international SWIFT payment systems from several large Russian banks. This was incredibly impactful for two major figures of the Russian banking sector, Sberbank and VTB. As a result of such wide-ranging suppression, those banks were forced to shut down all operations across Europe — representing an enormous obstacle on their paths toward further globalization.
Moscow has taken definitive action in response to its socially and financially imposed decline in the eyes of Western nations. Reflecting this sentiment of self-determination, government leaders have begun a gradual separation from foreign currencies such as U.S. dollars, recognizing the need for greater economic autonomy. The result? Strengthening ties with two countries that seek to embrace the Kremlin more entirely: China and India. This international alignment provides Russia with increased investment opportunities sorely needed during times of financial disparity– further exemplifying the country’s victory over oppressive detriment.
