The pressure on Kremlin boss Vladimir Putin is growing. The Russian economy is suffering from Western sanctions.
Moscow – Since then, the international community, primarily the USA and the EUsanctions against Russia in response to the invasion of the Ukraine have enacted, endeavors Wladimir Putin about the domestic political sovereignty of interpretation. In the first place, the West hurts itself the most. Russia will get through the crisis better than others, Putin has emphasized several times.
Scientists from Yale University have now examined how the Russian economy is actually doing in the wake of the sanctions. The result is “devastating”, as the researchers put it in their study expressed. “The assumption that the Russian economy is particularly resilient is simply a lie,” they explained in the specialist magazine Social Science Research Network.
News on the Ukraine war: “Sanctions are having a devastating effect on Russia’s economy”
The study at Yale University was based on data that was collected independently. The numbers Moscow cannot be trusted, emphasized the researchers. Among other things, the scientists examined how auditing firms and international trading partners of Russia assessed the economic situation. In addition, data on per capita consumption were evaluated.
More than 1,000 foreign companies have already left Russia. Gross domestic product (GDP) has suffered by more than 40 percent since the sanctions began. According to the researchers, two factors play a central role: on the one hand, production has “come to a standstill” and, on the other hand, there is currently no capacity to replace “lost companies, products and talents”. Both the import and export business are suffering from the sanctions.
Putin is currently reacting to the economic chaos with state subsidies, the scientists explained in the study. That tears an enormous hole in the Russian state budget. “The Kremlin’s finances are in much worse shape than previously thought.”
Data from the European Commission recently confirmed that Western sanctions are taking effect in Russia: The authorities in Brussels confirmed the German press agencythat the export business in particular could be massively curbed. Reserves of the Russian central bank worth billions were also frozen. “The available data shows very clearly that the sanctions are working,” said a senior EU official, who asked not to be identified.
News about the Ukraine war: Russia is being forced into a new economic system
The EU Commission further stated that Russia must now develop into a self-sufficiency economy. Putin was forced to make this change by the sanctions. The authority in Brussels emphasized that the lack of access to foreign technologies and growing difficulties in the supply chains are likely to pose challenges for the Russian state. (do)
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