The expert explained what indicators will allow us to assess the real impact of sanctions on Russia

31 January 2023, 21:41 | Economy
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In order to more clearly assess the real impact of Western sanctions on Russia and its people, the world should not look at messages in the propaganda media with such complex indicators as GDP or the ruble exchange rate, but analyze dozens of more specific indicators.. Such, in particular, can be data from business - tax revenues, industry indicators, and so on, said Vladimir Milov, a Russian opposition figure, a representative of the Free Russia Foundation, at the Atlantic Council conference.

“Ultimately, this will allow us to comprehensively understand a very complex picture of different cross-sectoral impacts on statistics,” he said..

According to the expert, such indicators from businesses are more reliable than, for example, inflation data.. Milov is convinced that the latter is calculated by Moscow using a fuzzy formula, which is why it is significantly underestimated.

In particular, evidence of this may be the ratio of the decline in real incomes of Russians and sales figures.

" Suddenly Russians prefer to keep money rather than spend it. How does this happen? I think the explanation is that if you really compare revenues with real inflation, and not with an artificially low version, then you will see the real impact of sanctions on the welfare of Russia,"

Milov said that before Russia's full-scale invasion of Ukraine in 2022, several different reputable economists said that Russians were on average 10-15% poorer in real terms compared to 2013, before the annexation of Crimea.. According to him, now we can say for sure that the inhabitants of the aggressor state have become at least 20% poorer in 9 years.

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In turn, the head of Alexei Navalny's headquarters, Leonid Volkov, announced several results of sociological research in Russia. According to him, in 2022, 80% of people who were going to buy some significant thing had to reconsider their plans due to sanctions and war.. Also, 80% of Russians have changed their vacation plans.. At the same time, less than half of the citizens had plans for recreation and new purchases.. In addition, fewer people in the Russian Federation have financial savings..

Both Volkov and Milov noted that Russians are beginning to understand what is really happening in their country - that it is not the sanctions of the West that are to blame for the deterioration of their lives, but the authorities of the Russian Federation itself..



" If Putin does not stop his aggressive behavior, does not put an end to this nightmare, the impact of sanctions will be stronger. Then there will be more chances that this war will end and everything can gradually become normal again for the Russians.. They must understand this connection,"

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During the Atlantic Council conference, an economist at the Institute of International Finance explained what Western countries should focus on on the issue of sanctions against Russia in 2023.




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