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Russia Quietly Adds Up ‘Direct Losses’ From Financial Sanctions

  • Estimate covers financial sector hit, excludes broader economy
  • Finance Ministry document comes amid upbeat public claims
Pedestrians walk by Saint Basil's Cathedral on Red Square in Moscow, Russia.

Pedestrians walk by Saint Basil's Cathedral on Red Square in Moscow, Russia.

Source: Bloomberg

Russia’s financial sector suffered hundreds of billions of dollars in “direct losses” from the sweeping sanctions imposed by the US and its allies over President Vladimir Putin’s invasion of Ukraine, according to an internal Finance Ministry document.

The estimate, which includes significant hits to the stock market, bank capital as well as $300 billion in foreign-exchange reserves frozen by the restrictions, was included in a presentation for a top-level meeting of officials on responding to sanctions held last month. People familiar with the event confirmed the contents, speaking on condition of anonymity to discuss matters that aren’t public.