Kremlin says Russian economy in ‘shock’ after sanctions

The Kremlin on Thursday said Russia’s economy was experiencing a “shock,” after the U.S. and its allies imposed sanctions on the country.

The Russian government said that efforts are being made to minimize the impact of crippling economic sanctions imposed on Moscow.

“Our economy is experiencing a shock impact now and there are negative consequences; they will be minimised,” Kremlin spokesperson Dmitry Peskov told reporters on press call, Reuters reported.

“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,” he added.

Many Western countries have issued severe economic sanctions against Russia since it invaded Ukraine in late February. The value of the Russian ruble has plummeted in the past few weeks. 

Peskov referred to Russia’s economic situation as turbulent, according to the newswire, but said efforts to stabilize were already being made.

On Wednesday, Peskov said the U.S. had declared “economic war” against Russia.

Russian President Vladimir Putin echoed this sentiment, stating that rounds of economic sanctions on Russia are “akin to a declaration of war.”

President Biden announced a ban on Russian energy imports earlier this week, targeting one of Moscow’s largest sources of income. European countries have so far held back from announcing similar actions, though the European Union announced this week that it would be moving to cut its natural gas imports from Russia by two-thirds this year.