The Kremlin defies Brussels: Russia claims new sanctions will not hinder its banks

The Kremlin on Thursday downplayed the potential impact of the new sanctions package that the European Union is considering imposing on Russia, saying that the country's major banks have already demonstrated their ability to operate and thrive despite Western restrictions.

The European Union recently proposed a new set of measures aimed at increasing economic pressure on Moscow due to the war in Ukraine. This plan specifically targets Russian banks and certain cryptocurrency networks, with the goal of further weakening the country's financial system.

When asked about the Russian banking sector's ability to cope with these new constraints, Kremlin spokesman Dmitry Peskov stated that the additional sanctions should not cause major disruption. According to him, Russia's largest banks have already been operating under Western sanctions for several years.

"Our largest banks have been subject to sanctions for a long time," Peskov told reporters. He asserted that these institutions nevertheless continued to post significant profits, to grow, and to maintain what he described as "absolute" stability.

The Russian official also referred to statements made the previous day by the president Vladimir Putinwho had assured that the country's economic situation remained under control. Moscow regularly maintains that Western sanctions have not achieved their intended objectives and that the Russian economy has been able to adapt to the new conditions.

Since the start of the conflict in Ukraine, the European Union has adopted multiple rounds of sanctions targeting the Russian banking, energy, industrial, and technology sectors. Brussels views these measures as a way to reduce the financial resources available to Moscow to continue its war effort.

Discussions among EU member states on this new package of sanctions are ongoing. If approved, these measures will add to an already substantial arsenal of economic restrictions, while relations between Russia and Western countries remain deeply strained.