The European Union’s High Representative warned that the sanctions will trigger hyperinflation in Russia and the country will suffer a lot due to a damaged economy. Western political heads have pulled together over the weekend to impose tough financial sanctions on Russia due to Vladimir Putin pushing ahead with the invasion of Ukraine, despite multiple warnings not to do so. The Bank of Russia has raised the interest rate to 20 percent from 9.5 percent as the Russian ruble has begun to sink, due to the tough sanctions.
Mr Borrell told the BBC’s Today programme: “Well certainly the ruble will suffer a lot of doubt.
“You can even count your losses, half of its financial reserves if the central bank of a country certainly can we see how their financial reserve is lost, blocked they cannot use anymore.
“The current of this country is going to suffer a lot, it’s going to be a big devaluation of the ruble.
“It’s going to create inflation, it’s going to create big damage for the Russian economy, that’s what we’re looking for.”
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America has actively targeted nearly 80% of all of Russia’s banking assets, and the UK froze assets of major Russian banks.
Currency specialist at business consultancy the Adamis Principle, Patrick Reid spoke exclusively with the Express.
Mr Reid said: “Every single bank in the world has a set amount of dollars that they need to have as a backup entity in case of a war.
“Banks need dollars like oxygen. You need dollars to trade, to make agreements with banks.
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“First, this package includes financial sanctions, targeting 70 percent of the Russian banking market and key state-owned companies, including in defence.
“Second, we target the energy sector, a key economic area which especially benefits the Russian state.
“Our export ban will hit the oil sector by making it impossible for Russia to upgrade its refineries.
“Third: we ban the sale of aircraft and equipment to Russian airlines.”
America has also managed to target around 80 percent of all of its banking assets in Russia, whilst the UK has decided to freeze the financial assets of the majority of Russian banks.
Foreign secretary Liz Truss took to Twitter to express her opinion on the sanctions.
Ms Truss said: “There will be nowhere left to hide for the super-rich linked to Putin’s regime.
“More kleptocrats will be hit with restrictions in the coming weeks. Nothing is off the table.”
