Managing Russia’s war economy

If Vladimir Putin is the most important man in Russia, then Elvira Nabiullina is surely the most important woman. As head of the Central Bank of Russia, Nabiullina has been guiding the country’s financial defences against Western sanctions. She has managed the economy’s recovery since the rouble lost a quarter of its value right after the invasion began. With capital controls and interest rates of 20 per cent, the 58-year-old prevented a market panic and potential run on the banks. Since starting the job in 2013, Nabiullina has modernized the central bank and fought corruption in the financial system, both of which are politically risky. This has given her a reputation as a tough decision maker — in 2015, she was named “Central Bank Governor of the Year” by Euromoney magazine. Now, with a bad recession and inflation that could reach 23 per cent this year, there are more tough decisions ahead. Sergei Guriev, a Russian economist and professor at Sciences Po in Paris, told The New York Times: “I think that she is actually propping up Putin’s war economy. She is actually doing something that she didn’t sign up for.”