Official warns that Russia could seize $750B in retail deposits if sanctions worsen

The West has imposed harsh sanctions against Russia amid a “special military operation” into Ukraine announced by the president of the Russian Federation, Vladimir Putin. These sanctions are already disrupting the Russian financial sector.

Russia could seize retail deposits amid sanctions

According to Nikolai Arefiev, the vice-chairman of the Duma’s committee on economic policy and a member of Russia’s communist party, these sanctions could force the Russian government to confiscate retail deposits.

The Russian government can seize retail deposits amounting to 60 trillion rubles, equivalent to $750 billion. Such a seizure will happen if the West sanctions all of the country’s funds in foreign accounts.

“If all the foreign funds are blocked, the government will have no other choice but to seize all the deposits of the population, or 60 trillion rubles in order to solve the situation,” said Arefiev in an interview with a local news agency. He also said that Russia has stored more than $640 billion worth of gold and foreign exchange reserves in offshore locations.

Sberbank denies being included in US sanctions

After sanctions were imposed against Russia, the largest bank in Russia, Sberbank, said that it was included in these sanctions. However, the bank took down this notice shortly after, saying that it was false and caused by a “website crash.”

The bank has since updated its website, saying that its operations were running normally. It has also posted a saying,

We are ready for any deployment of the situation and have worked out scenarios to guarantee the protection of the funds, assets and interests of our clients, as well as to ensure the regular operation of all our functions.

The Ministry of Foreign Affairs in Russia issued a statement on Thursday saying it “will respond strongly to these sanctions, not necessarily in a symmetrical manner”. It added that the response would not fail to affect the US.

The Russian ruble is plummeting in the wake of these sanctions, sitting at an all-time low against the US dollar. The Russian stock market is also being dealt a major impact. On the other hand, the crypto market has tumbled, with Bitcoin dropping below $35,000 for the first time since June last year.

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