The Russian economy is taking “serious blows”, the Kremlin acknowledged, as the country’s growing isolation piles further pressure on its tottering financial system.

“Russia’s economy is experiencing serious blows”, - Kremlin spokesman Dmitry Peskov said in a call with foreign journalists. “But there is a certain margin of safety, there is potential, there are some plans, work is underway”.

Peskov was responding to a question about US President Joe Biden’s remark in his State of the Union speech that the Russian economy had been left “reeling” from sanctions.