The sanctions come as G7 leaders are preparing to gather soon in Italy for a summit where the top priorities will be boosting support for Ukraine and grinding down Russia’s war machine.
Archived version: https://archive.ph/qrIbC
The sanctions come as G7 leaders are preparing to gather soon in Italy for a summit where the top priorities will be boosting support for Ukraine and grinding down Russia’s war machine.
Archived version: https://archive.ph/qrIbC
Is their economy actually failing? Last I heard, it’s doing better than anticipated with the sanctions.
I’s not as bad as some western media reported, but it’s not great. They aggressively used their cash reserves and low interest rates to combat the sanctions, so it looked that they were immune, but it’s catching up to them now with interest rates at 16%. And while they were able to circumvent the sanctions with aid of India and China, they were forced to sell their oil & gas for cheap, while OPEC cartel raised the global price. Now Russia wants to make China make them pay full price, but they have no way to demand it if they want any revenue at all.
They held 8.5 to 9.5 range for just about 1 year. Before and after it was 16-20% range.
Source: https://base.garant.ru/10180094/
That’s because they started a war economy, where the Kremlin finances lots of companies, which looks good on an economic sheet, but it’s only to make stuff getting used up in the war not to benefit russia itself which is disastrous for the long term russian economy.
Imagine when the war is over, and tons of people are no longer working for russia but for a now defunded war machine…
There are valid concerns of economic overheating from huge internal investments.
Russia is experiencing standard consequences of rapid economic expansion: salaries are rising up, labor market is constrained.
One negative point is high interest rates, which are held high to slow down economic expansion.
Sanctions have impact, but the impact is falling very far from expectations.