‘Goodbye Ruble!’ Russia’s Economic Crash Sends Shockwaves as World Stands ‘United With Ukraine’

Alex GriffingFeb 28th, 2022, 2:14 pm
 
Vladimir Putin

RAMIL SITDIKOV/SPUTNIK/AFP via Getty Images

As biting U.S. and European sanctions took their toll on the Russian economy on Monday, the Russian Ruble hit new record lows, while trading on the Moscow stock exchange was canceled. The Russian Central Bank, which can no longer pump the billions of reserve currency Russia has into the economy due to sanctions isolating the bank from international financial institutions, announced the Moscow Stock Exchange will be shut on Tuesday as well.

Russia’s central bank hiked its key interest rate to 20 percent from 9.5 percent to try and combat the falling Ruble and soaring inflation. Russian President Vladimir Putin, who continues his deadly invasion of Ukraine, also banned all Russian citizens from transferring hard currency overseas, which Bloomberg notes “put much of the country’s $478 billion in external debt at risk of default.”

Russia’s oligarchy is feeling the squeeze as both Monaco and Switzerland have decided to go “forego” neutrality and adopt the European Union’s sanctions on Russia and freeze Russian assets in their financial sanctuaries.

Reuters reported, “Monaco, an international hub often favored by wealthy Russians, will also proceed with freezing assets and imposing sanctions on Russians in the wake of Russia’s invasion of Ukraine, said a statement by the Monaco Royal Palace.”

While the rich are under direct financial assault, everyday Russians too are stuck standing in lines trying to withdraw cash from ATMs and international financial tools like Apple Pay are reportedly no longer working in Russia.

Pundits and commentators from around the globe and across the political spectrum have taken to social media to celebrate the sanctions against Russia on social media.

Democratic strategist Keith Edwards noted on Twitter that “The ruble is now worth a penny.” He joked, “They’re about to rename the ruble rubble.”

Conservative lawyer George Conway jested, “Bye bye ruble ruble goodbye.”

The Atlantic’s David Frum commented, “Doubtful that the ruble will be convertible into anything at all much longer. It’s on its way to effective worthlessness, as the Soviet ruble was effectively worthless: an accounting unit within a closed economy, but unable to buy goods or services on international markets.”

Sky News’s Alistair Bunkall commented on the significance of the Swiss standing against Russia, “Switzerland has just announced it will forgo its traditional neutrality and sanction Russia. Oligarchs seen Switzerland as a safe haven for their cash – an estimated $11bn kept here. This will hurt.”

Below are an assortment of other reactions to Russia’s economic woes:

Tags:
Alex Griffing - Senior Editor

Alex Griffing is a Senior Editor at Mediaite. Send tips via email: alexanderg@mediaite.com. Follow him on Twitter: @alexgriffing