EU countries may impose a total ban on the import of euro cash into Russia, just as the US has already banned the import of dollars, Pavel Samiev, an economist and director of the analytical agency BusinessDrom, told Lenta. ru. He added that in this case there will still be the possibility of importing foreign currency through third countries.
Britain has imposed new sanctions on Russia amid a Russian special operation in Ukraine. This was announced by the British government. The Cabinet of Ministers has announced that London will ban the import of its currency, the pound sterling, into Russian territory.
Samiev is convinced that EU countries can also support a ban on the import of euros into Russia. This threatens the shortage of cash in return, which already leads to additional restrictions on cash withdrawals and exchanges.
“It is already possible to change the currency today, but withdrawals are quite problematic,” Samiev said. – In terms of exchange rate it is simply unprofitable and in the face of growing deficit this problem will only get worse. But it can not be said that the ban on the import of the euro will have a particularly dramatic impact on the Russian economy as a whole, this is just another limiting factor. The fact is that the exchange rate is determined by the market in which the cashless payment takes place.
The economist noted that even now Russians see large spreads in buying and selling currencies, this only reflects the fears caused by the uncertainty of market participants. The same spread is fixed when purchasing cash and non-cash currency.
“If the euro is completely banned, which is very likely, this problem will only get worse,” the analyst said. – But, in any case, there will be options for importing private individuals through third countries. We know relevant examples of countries that have had similar restrictions. “Another thing is that, for example, in Iran, there was a very serious story about the regulation of foreign exchange by private individuals, something in the direction of the Soviet Union.”
Earlier, British Foreign Secretary Liz Truss had promised that London would continue to impose new sanctions on Russia until it withdrew its troops from Ukraine. He added that Britain would continue to supply arms to Ukraine and would also support the country’s efforts to “force Russia out of its territory”.