Russians' rush to withdraw cash leads to queues at Moscow ATMs as effects of sanctions start to bite: photos
Russians are queuing at ATMs to withdraw cash as sanctions take their toll on the economy.
Western sanctions have caused the Russian ruble to plummet, fueling a scramble for foreign currency.
Payment card providers Mastercard and Visa have also blocked Russian banks from using their services.
People in Russia are queuing to withdraw foreign currency from ATMs after Russia's economy was targeted by a series of Western sanctions in response to Moscow's decision to invade Ukraine.
The US, the UK and the EU have introduced a raft of financial sanctions, including freezing $630 billion of foreign assets which the central bank could have used to stabilize the ruble and the Russian economy.
People are also queueing to withdraw rubles amidst concern over the banking system in the wake of sanctions.
Russia's two largest banks raised savings rates to encourage people to keep their money in the bank and prevent potential bank runs, state media reported.
The ruble fell by 30% on Monday to a record low and has continued to depreciate since.
In an attempt to shore up the currency, Russia's central bank more than doubled interest rates to 20% on Monday.
People queued to withdraw foreign currency as the value of the Russian ruble continued to plummet. As of Wednesday the exchange rate sat at 112 rubles per US dollar, compared with around 77 rubles a month ago.
The UK, EU and US, alongside other governments, have also barred some Russian banks from the SWIFT global payment system.
The weaker currency has also had an effect on the cost of imported goods, including prices of medical supplies.
The Russian central bank said last week that cards issued by sanctioned banks would be unable to be used for Apple Pay and Google Pay services.
U.S. payment networks, Mastercard and Visa, also said on Monday that they would block financial institutions in Russia from using their services in line with US sanctions, Reuters reported.
The sanctions have also led to long queues at metro stations in Moscow with Russians blocked from using sanctioned payment options to purchase train tickets and other amenities.
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