London Daily

Focus on the big picture.
Saturday, Jul 18, 2026

Russia could take 10 years to recover from sanctions, says boss of country's largest bank

Russia could take 10 years to recover from sanctions, says boss of country's largest bank

The most severe package of sanctions placed on any country in the modern era could relegate Russia to a lagging economy for years to come.

Russia's economy may take a decade to recover from the crushing sanctions placed on the country following its invasion of Ukraine, according to a top banking executive.

Returning to pre-sanctions levels could take nearly 10 years as the nation remains cut off from half of its trade, said German Gref, the boss of Sberbank, Russia's largest bank.

Mr Gref estimated the countries who have severed ties with Russia were responsible for 56% of its exports and 51% of its imports, crippling the economy.

"This is a threat to 15% of the country's gross domestic product, the bulk of the economy is under the fire," said chief executive Mr Gref, speaking at Russia's annual international economic forum in St Petersburg.


Dozens of multinational corporations pulled out of Russia in the wake of its invasion of Ukraine in February, while a large group of countries cut off Russia's access to the international financial network and seized properties, yachts, and private jets belonging to allies of President Vladimir Putin.

The economic isolation imposed on Russia caused the stock market and the rouble to crash, the cost of household items to soar, and pushed the government to introduce strict capital controls.

Russia's central bank also lifted the interest rate from 9.5% to 20%, before reducing it again in June.

As a result of sanctions, and "if we do nothing - we may need around a decade to return economy to the 2021 levels", Mr Gref said.

The chief executive also called for structural reforms to the Russian economy.

Russia has suffered from having its key logistics arteries severed - Russian ships were banned from entering European Union ports, while sanctions closed the airspace over Europe to Russian airlines.

According to Mr Gref, cargo shipments have fallen by six times.

In May, Britain announced fresh sanctions targeting £1.7bn worth of trade with Russia in a bid to "further weaken Putin's war machine".

They include sharply higher tariffs on £1.4bn worth of imports from Russia and bans on exports to the country that are worth £250m a year.

The measures, announced by Chancellor Rishi Sunak and Trade Secretary Anne-Marie Trevelyan, mean the total value of products subject to full or partial import or export sanctions since the invasion of Ukraine is more than £4bn.

The EU also recently announced plans to halt its purchases of Russian oil and gas, which is currently raising more than $1bn a day for the embattled country.

Comments

Oh ya 4 year ago
Sorry for the truth but the rouble is worth more now than before the sanctions. But yes it will cost Russia something but they have very little out of country debt, they have the natural resources and lots of grains to eat.. Think about this. When you own natural resources you have a product that you can do something with, then the central banks of the world print money out of thin air that have nothing backing the value of those dollars and want to trade you for some of your natural resources, so you get a dollar backed by a bankrupt government. That is not a good trade for natural resources. The EU will find out this winter just what keeps the house warm and fist full of Euros or Russian natural gas

Newsletter

Related Articles

0:00
0:00
Close
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
Energy Risk, Uneven Growth and the New Geography of Global Capital
The AI Race Enters Its Infrastructure Era
Security and resilience remain long-term national priorities
Britain balances growth ambitions with public finance pressures
Regional devolution becomes a defining theme of the next Labour era
Industrial strategy returns to the centre of British economic policy
Political Instability Remains a Challenge for UK Investment Confidence
Brexit Economic Debate Continues as Public Concerns Over Long-Term Impact Remain
UK Climate Risks Rise as Met Office Warns Extreme Weather Is Becoming More Common
Housing Shortages and Regional Inequality Become Key Priorities Under Incoming Labour Leadership
National Health Service Reform Remains One of Britain’s Biggest Political Challenges
Bank of England Remains at Centre of UK Economic Debate Over Inflation and Growth
UK Economy Shows Recovery Signs but Households and Businesses Remain Under Pressure
Britain Deepens European Defence Cooperation as NATO Allies Seek Stronger Security Capabilities
United Kingdom Expands Sanctions Against Russian Cyber Networks Over Security Threats
UK Industrial Strategy Faces Test After Government Takes Control of British Steel
British Businesses Seek Policy Clarity as Andy Burnham Prepares to Lead Labour Government
Andy Burnham’s Labour Leadership Signals Major Shift Toward Regional Power and Devolution
British Steel Nationalisation Creates New UK-China Tensions Over Control of Strategic Industry
For 36 Years, He Scammed About 300 Luxury Hotels — Until He Was Caught
England's World Cup Exit Expected to Cost Hospitality and Retail £334 Million
Former ICC Prosecutor Aide Speaks Publicly About Allegations Against Karim Khan
Opposition Raises Questions Over June Heatwave Power Grid Pressures
Mastercard Explores Sale of Majority Stake in UK Payments Operator Vocalink
Boeing Forecasts Global Commercial Aircraft Fleet Will Double by 2045
London GP Surgeries Receive £18 Million to Expand Primary Care Capacity
Health Advisers Recommend Nationwide Meningitis B Vaccination for Teenagers
OECD Warns UK Economy Faces Slower Growth and Weak Productivity
Treasury Places Major Global Cloud Providers Under Direct Financial Oversight
Financial Markets Rally as Shabana Mahmood Emerges as Leading Treasury Candidate
Incoming Government Prepares Thames Water Nationalisation and New North Sea Drilling Approvals
UK Government Plans Deep Cuts to Bilateral Aid for African Nations
United States and Iran Exchange Direct Strikes for Seventh Consecutive Night
Incoming Prime Minister Andy Burnham Confirmed as Labour Leader Ahead of Downing Street Handover
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
Andy Burnham Takes Labour Leadership and Prepares to Become Britain’s Seventh Prime Minister in a Decade
Tech Companies Want to Move Computing Off Your Screen and Onto Your Body
White House Teleprompter Operator Earned More Than $100,000 From Bets Linked to the President's Speeches
French Prime Minister Survives No-Confidence Vote After Controversial Budget Cuts
European Commission Opens Excessive Deficit Procedure Against France
French Senate Blocks Key Immigration Reform Measures
French Government Pushes EU Action Against Ultra-Fast Fashion Imports
French Parliament Debates Expanded Autonomy Powers for Corsica
France Reopens Autonomy Talks With New Caledonia After Months of Unrest
Bordeaux Wine Producers Seek Three Hundred Million Euro Aid Package After Export Collapse
×