US: "Russia is becoming a closed economy"... Ruble recovery attributed to 'market intervention'

[Asia Economy New York=Special Correspondent Joselgina] The Joe Biden administration in the United States assessed on the 1st (local time) that Russia, which invaded Ukraine, is on the verge of becoming a closed economy due to various Western sanctions. It dismissed the recent recovery trend of the ruble's value as a result of market intervention.

According to major foreign media, a senior U.S. Treasury official stated at a press briefing that Russia lacks the capacity to produce consumer goods and technology goods on its own.

The official mentioned that the recent recovery of the Russian currency, the ruble, which had sharply fallen due to Western sanctions, does not reflect market conditions. He evaluated that in the black market, which reflects the actual value, the ruble's value has fallen significantly, indicating weakness as a financial instrument.

The official emphasized, "The economic impact on Russia is severe," highlighting that the coordinated Western sanctions have dealt a very significant blow to the Russian economy. External experts expect the gross domestic product (GDP) to contract by 10% this year.

He then pointed out that Russia mainly produces raw materials, saying, "As a closed economy, Russia will only be able to consume what it produces. This will be a harsh adaptation."

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