Economic Update – Sixth Day of War - 1st March 2022 09:25 (GMT +1)
As the sixth day of Russian invasion into Ukraine begins, the international economic situation intensifies. In a historical policy shift, Switzerland decided to break its decade-long neutrality and match the EU’s sanctions on 28th February. The country has been perceived as a safe haven for Russian oligarchs, who will now have to seek financial refuge in other, less secure, countries. In response to the harsh sanctions imposed by the West, the Russian central bank more than doubled its interest rates from 9.5% to 20%. This came after the Russian rouble went down to as much as 119 per dollar.
On 1st March, the London Stock Exchange suspended shares of the Russian VTB to be traded. Similar moves had been adopted by the Deutsche Börse, Nasdaq, and the New York Stock Exchange. On the same day, Mastercard decided to restrict access to its network to various unnamed financial institutions. Visa may soon follow suit.