Moscow braces for market meltdown Monday as new sanctions hit

Moscow is bracing for economic panic when markets open on Monday morning, with the value of the rouble expected to plummet after the US and European Union announced unprecedented sanctions over the weekend.

Major Russian banks such as Sberbank and VTB Bank have assured their customers that they will be able to access their rouble deposits and make exchanges into foreign currencies like dollars and euros.

But the economic turbulence will mark a key moment when the gravity of the crisis in Ukraine hits home for many ordinary Russians.

Videos circulated on social media of long lines at some Russian ATMs on Sunday morning, although the rush for currency is expected to begin in earnest on Monday as markets open.

Some details of the sanctions remain unclear, and it is possible that western governments will make exceptions for oil and gas payments.

Elina Ribakova, deputy chief economist of the Institute of International Finance, predicted earlier this week that sanctions on the central bank would have drastic consequences for Russia.

International financial institutions and other organisations have also started to reduce offices or cut ties with Russia due to the sanctions and reputational risk. That has impacted industries far from the banking sector.