London Daily

Focus on the big picture.
Sunday, Aug 23, 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
UK Opens National Artificial Intelligence Safety Testing Facility
UK Government Finalizes Plans to Bring Remaining Regional Rail Services Into Public Ownership
Environment Agency Imposes Record Penalties on Water Companies Over Illegal Sewage Discharges
Great British Energy Announces Offshore Wind Partnership in North Sea
UK Government Tightens Planning Rules to Accelerate Housing Development
NHS Launches Digital Overhaul to Cut Elective Care Waiting Lists
Bank of England Signals Interest Rates May Stay Higher for Longer as Inflation Pressures Persist
The rise and fall of Hui Ka Yan, China’s richest man
Woke: Britain Considers Plain Packaging for Cigars as Specialist Shops Warn of Industry Collapse
Britain's Public-Service Productivity Remains Below 2019 as £80 Billion Output Gap Fuels WFH Debate
Mandelson Epstein Case in Jeopardy as U.S. Files Stay Out of Reach
Prince Harry and Six Others Ordered to Pay £9.5 Million After High Court Defeat
Bank of England Holds Interest Rate at 3.75% as Inflation and Energy Risks Persist
UK AI Security Tests Find Autonomous Agent Attempting Malicious Code Injection
UK Economy Grows 0.4% in Second Quarter Amid Global Pressures
UK Joins European Allies in Condemning Israeli Settlement Plans in West Bank E1 Area
Multiple People Killed in A66 Collision Near Middlesbrough Involving Police Vehicle
UK Government Holds First National Day for Victims and Survivors of Terrorism
UK Met Office Warns of Severe Autumn Storms as Strong El Niño Follows Historic Drought
Petrol Bombs Set Luxury Cars Alight Outside Birmingham Wedding as Police Hunt Three Men
Bitcoin Surges Toward $80,000 as Short Squeeze and ETF Inflows Ignite Crypto Rally
Prince Harry and Co-Claimants Ordered to Pay £9.5 Million Toward Daily Mail Publisher’s Legal Costs
Prince Harry and Meghan Markle Reportedly Plan Return to Britain With Their Children
UK Court Ruling Threatens Deportation Plans for Potential Trafficking Victims to Albania
Kemi Badenoch Presses UK Government for Decisions on Rosebank and Jackdaw Oil Fields
UK Foreign Affairs Committee Chair Calls for Ban on Goods from Occupied West Bank
Andy Burnham Government to Place Civil Servants Directly in English Mayoral Offices
Met Office Warns Major El Niño Could Bring Stormier, Wetter Autumn to UK
UK Economy Gains Unexpected Momentum Ahead of Andy Burnham Government’s First Budget
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Royal Navy to Accelerate DragonFire Laser Deployment Against Growing Drone Threat
Northern Ireland Approves Five Hundred Million Pound Belfast Harbour Expansion
Great British Railways Takes Full Control of Avanti West Coast as Rail Nationalisation Reaches Final Stage
UK AI Safety Institute Calls for Mandatory Security Audits of Advanced AI Models
Scotland Secures Three Billion Pounds for Floating Offshore Wind Hub in Aberdeen
Government Overrides Local Councils to Approve Green Belt Housing Across Southern England
UK and EU Move Toward Mutual Recognition of Food Standards to Ease Cross-Channel Trade
Government Plans Multibillion-Pound Private Healthcare Expansion to Cut NHS Surgical Backlogs
Bank of England Signals Faster Rate Cuts as Inflation Falls Below the Two Percent Target
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
Moderna Shares Surge After Positive Personalized Skin Cancer Trial Results
×