- A top Russian central banker tried resigning over Putin's invasion of Ukraine, but he said no.
- The Russian central bank is playing a major role managing the economic fallout of the war.
- Economic sanctions are battering the Russian economy, and a major recession is likely.
A top Russian central banker sought to step down over Russia's invasion of Ukraine, but Russian President Vladimir Putin rejected her resignation, Bloomberg reported, citing four people familiar with the situation.
The Russian central bank governor Elvira Nabiullina has served in her post since 2013 and Putin recently renominated her for another five-year term last week. Though she wanted out, Putin would likely view it as a betrayal, Bloomberg reported.
The 58-year-old Russian economist hasn't commented publicly about her re-appointment. But the Russian central bank's press service told state-controlled media that her desire to resign "doesn't correspond with reality" without specifying any further.
Bloomberg also reported a "state of hopelessness" taking root among Russian central bank employees who fear being cut off from the outside world.
Western sanctions have pummeled the Russian economy in the wake of its invasion of Ukraine, now in its fourth week. The value of the Russian ruble has fallen steeply against the dollar, rendering one ruble to be worth just around one American penny. International penalties are blocking the Russian central bank from accessing $643 billion in international reserves to prop up the nation's beleaguered currency.
Goldman Sachs has projected that the Russian economy will shrink 10% while inflation jumps to 20%, due to restrictions imposed on its financial activities and an exodus of Western companies from Russia.
The US is eyeing additional penalties as Russia escalates its military campaign in Ukraine with indiscriminate bombing of civilian targets. President Joe Biden imposed an ban on Russian oil and gas imports, and Congress approved $13.6 billion in emergency military and economic aid for Ukraine. The Biden administration also has imposed sanctions on a wide range of Russian government and business officials with close ties to Putin.
Republicans and Democrats are currently negotiating on a bill to revoke trade relations with Russia. That move would open the door for tariffs on Russian goods.