On the first day of trading after western countries excluded Russian banks from Swift, reports on Feb. 28 indicated that the ruble's value dropped close to 30 percent. Meanwhile, TSMC confirmed that they are complying with new export control rules and have stopped providing chips to Russia.
People made a long queue in front of local ATMs despite the cold weather. Russian citizens are waiting to withdraw currencies from ATMs across the country. Due to Western financial sanctions on Russia, the Russian ruble's value has plunged in the market and citizens are in a rush to get access to their money before they become frozen in the bank.
Peter, St. Petersburg resident: “Since Thursday (Feb. 24) everyone has been running from ATM to ATM to get cash. Some are lucky, others not so much.”
Igor, Moscow resident: “These consequences are quite upsetting. I'm used to living in the 21st century, without carrying plastic cards around. Everything is installed on my smartphone. I don't think I've used cash in five years. This is a big blow on me.”
Reports on Monday, Feb. 28 indicated that the ruble's value dropped close to 30 percent to the dollar on the first day of trading after western countries announced to exclude Russian banks from Swift. The Russian Central Bank enacted emergency measures to try to maintain financial stability and asked its people to remain calm. However, there is still a case of cash shortage and disrupt payments.
According to U.S. media reports, Biden's penalties against Russia include various economic sanctions in an attempt to "disarm Fortress Russia" by undermining its massive war chest. The Taiwan Semiconductor Manufacturing Company (TSMC), as well as other worldwide chip manufacturers, have also stopped providing chips to Russia. TSMC confirmed that they are complying with new export control rules announced by the Taiwanese government.
Liu Pei-chen, Director, Taiwan Industry Economic Services: “TSMC exports only a very small amount to Russia in the past, so it doesn't really have an impact on the company at all in this year's operation. If in the future Russia decides to retaliate, we have other supply chain sources for our natural gases and chemicals. Taiwan had diversified its sources and would therefore suffer less. We have also built up reserves of strategic materials to last for a while.”
Experts say that the TSMC exports very few chips to Russia and the effect on the semiconductor sector is minimal. Taiwan's Ministry of Economic Affairs (MOE) said that the government would join international sanctions on Russia for invading Ukraine. The MOE further said Taiwan will follow the 1996 Wassenaar Arrangement on export controls for weapons and dual-use goods and technologies to strictly scrutinize products sent to Russia.