Moscow’s top spokesman has brushed off a fresh wave of European sanctions targeting Russian banks, insisting the sector remains “absolutely stable and controllable” and continues to generate hefty profits. The remarks from Dmitry Peskov, President Vladimir Putin’s press secretary, came a day after the European Commission proposed a 21st sanctions package that would, among other measures, ban EU banks from transacting with a number of Russian financial institutions.

Speaking to reporters, Peskov echoed Putin’s own assessment at a government meeting, acknowledging “certain difficulties and tendencies linked to investment restraint and a slowdown” but stressing that the overall banking environment is under firm control. The Central Bank of Russia, Peskov noted, is closely monitoring developments and taking necessary steps to bolster stability – a message clearly calibrated to reassure domestic audiences and foreign partners.

The Kremlin’s confidence centres on the sector’s track record under sanctions. Major Russian lenders have been cut off from Western capital markets since 2014, yet Peskov claimed they are not only surviving but thriving, registering “large profits” and preserving “maximum reliability ratings.” Trade finance, a particular focus of the latest EU proposal, is already being handled by specialist firms on the market that “provide the entire spectrum of services,” he said, signalling that Moscow has built workarounds.

Viewed from Brussels, the incremental tightening of restrictions reflects frustration that existing penalties have not crippled Russia’s financial system as intended. European officials argue that plugging loopholes in trade finance and targeting banks that facilitate sanctions evasion could still inflict pain. Yet analysts in London note that Russian banks have increasingly shifted to transactions in roubles and currencies of friendly nations, insulating themselves from new dollar and euro-based measures.

The Kremlin’s defiant posture, while a familiar rhetorical tool, is not without substance. The banking sector posted record profits last year and has adapted its business models. Nevertheless, the long-term cost of financial isolation – from reduced investment to technological decay – remains a risk that even Putin’s circle acknowledges behind closed doors. For now, however, the official line is one of unshakeable resilience.