‘Russian Bank Collapse’: Rouble Plummets After Gazprombank Santions, Officials Respond

Russia’s rouble plummeted to its lowest rate against the dollar since its invasion of Ukraine. This comes after the United States issued sanctions against private-owned bank Gazprombank, more than 50 internationally connected Russian banks, more than 40 Russian securities registrars, and 15 Russian finance officials. On Tuesday, the currency hit 107 against the dollar.

“Today’s sanctions targeting Russia’s largest remaining non-designated bank, as well as dozens of other financial institutions and officials in Russia, will further diminish and degrade Russia’s war machine. This sweeping action will make it harder for the Kremlin to evade U.S. sanctions and fund and equip its military,” Secretary of the Treasury Janet Yellen had announced. “We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine.”

Responding to the rouble fall, finance minister Anton Siluanov indicated that the President Putin-led government was not trying to prop up the currency.

“I’m not saying whether the rate is good or bad. I’m just saying that today the exchange rate . . . is very, very conducive to exports,” Siluanov said.

Meanwhile ‘Russia bank collapse’ started trending on X, platform formerly known as Twitter. “Russian banks are collapsing after the sweeping new sanctions that the US rolled out on Wednesday,” an economics professor said on social media.

“Not going to lie… watching the russian Ruble collapse is making my day 😂” another person added on the Elon Musk-led platform.