Economic sanctions imposed by West causing anxieties among Russians

MOSCOW • For two decades under President Vladimir Putin, Russians reaped the bounties of capitalism and globalisation: cheap flights, affordable mortgages, a plethora of imported gadgets and cars.

On Monday, those perks of modern life were abruptly disappearing, replaced by a crush of anxiety as sanctions imposed by the West in retaliation for Moscow’s invasion of Ukraine rattled the foundations of Russia’s financial system.

The rouble cratered, losing onequarter of its value, and the central bank shuttered stock trading in Moscow through Tuesday.

The public rushed to withdraw cash from ATMs, and Aeroflot, the national airline, cancelled all its flights to Europe after countries banned Russian planes from using their airspace.

Concern about travel was so great that some people rushed to book seats on the few international flights still operating.

“I’ve become one concentrated ball of fear,” said the owner of a small advertising agency in Moscow, Ms Azaliya Idrisova, 33. She said she planned to depart for Argentina in the coming days and was not sure whether her clients would still pay her.

Compounding the pain was the decision by Western countries to restrict the Russian central bank’s access to much of its US$643 billion (S$872 billion) in foreign currency reserves, making it difficult for the bank to prop up the rouble.

Other moves struck at the heart of critical Russian industries.