U.S. sees sanctions driving Russia to be closed economy, on lookout for gaps

Massive sanctions imposed by the United States and its allies have hit the Russian currency and economy hard, and are driving Russia to be a closed economy, a senior U.S. Treasury Department official said on Friday. The official, speaking on condition of anonymity, told reporters that sharp restrictions on foreign exchange meant the value of the rouble was not being set by supply and demand.

Emerging black market activity showed a sharply depreciated value of the currency, and reflected the weakness of the rouble as a financial instruement, the official added.