Sanctions against Russia’s central bank have taken effect, according to a statement published in the Official Journal of the European Union (EU) on Monday.
Sanctions prevent the Bank of Russia from using international financial transactions to support the ruble.
As a result, the central bank’s ability to use its $ 600 billion reserves to support the ruble’s exchange rate, which was at an all-time low last week, is severely limited.
A US official told reporters that the ruble could start a “free fall”.
According to EU High Representative for Foreign Affairs and Security Policy Joseph Borrell, the sanctions mean freezing at least half or even more of the Bank of Kiev’s reserves.
The sanctions imposed to punish Russia for its aggression in Ukraine were agreed on Saturday. The United States, Canada and the United Kingdom have also joined the sanctions.
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