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The Secret War that’s Destroying the Russian Central Bank
In recent weeks, Russia’s central bank has become the epicenter of a significant political and economic struggle. The governor, Elvira Nabiullina, faces mounting criticism from prominent Russian oligarchs, sparking speculation about her potential dismissal. This turmoil unfolds against the backdrop of crippling Western sanctions, which have finally begun to exert substantial pressure on Russia’s economy. This article explores the key dynamics of this unfolding drama, the central figures involved, and the broader implications for Russia’s economic and political landscape.
Nearly three years after Russia’s invasion of Ukraine, Western financial sanctions are impacting the country’s economy. These sanctions have exacerbated internal tensions within the Kremlin, igniting fierce infighting over control of the central bank. Despite official claims that the sanctions have bolstered economic self-sufficiency, the reality paints a different picture. Russian officials’ repeated calls for the West to lift restrictions underscore the economic strain.
Since the 2014 annexation of Crimea, Russia has faced three major exchange-rate crises, each time managed by Nabiullina through aggressive interest rate hikes. However, recent developments indicate a shift in this approach due to mounting inflation concerns.
