For US banks, it has been a tough week. The Kremlin, too, sees the positive side of things.
The Kremlin believes that the fall of Silicon Valley Bank will not affect Russia since it is now so disconnected from the rest of the world’s financial system.
Based on the Kremlin’s spokesperson, Dmitry Peskov, “our financial sector has certain links with some elements of the world financial system, but it is largely under illegal limitations from the collective West,” as per TASS official news agency. He had been referring to the restrictions after the nation invaded Ukraine last year.
According to the news source, Peskov stated, “We are, to some extent, protected against the harmful consequences of the crisis that is presently happening worldwide.
Russia’s economy is strong and “stands solidly on its feet,” Peskov said Insider.
In comparison, because of the consequences of the American subprime mortgage crisis in 2008, which caused the Global Financial Crisis, Russia, like most of the rest of the globe, experienced a financial collapse.
Once the economy began to grow again, the nation set out to realize its extraordinary goal of turning Moscow into a major financial center. But with Russia facing heavy penalties, that hope has been destroyed.
Due to the conflict in Ukraine, many international banks and accountancy firms have left Russia or are planning to do so. Several Russian banks have also been suspended from SWIFT, the Belgium messaging service that enables banks worldwide to interact about cross-border transactions, 2 days after the assault.