Russia's economy is "

30 July 2022, 18:48 | Economy
photo Зеркало недели
Text Size:

The opinion that in the confrontation between the West and Russia, sanctions primarily destroy the Western economy, while the Russian economy is stable and even begins to recover, is based on a misunderstanding of how the Russian economy actually holds up in the face of an outflow of more than 1,000 global companies and international sanctions.

This is stated in a study by Yale University, which shows that in fact the Russian economy is “completely crippled” and the countdown to the complete collapse of the Russian economy is coming to an end..

The study is the first comprehensive analysis of the Russian economy since the beginning of the war in Ukraine.

The main conclusions of scientists at Yale University:.

Russia's strategic position as an exporter of raw materials has deteriorated irreversibly as it loses its former major markets and faces great difficulty in trying to redirect its exports to Asia..

Russian imports have largely collapsed and the country is facing major challenges in supplying key inputs, engineering components and technologies..

Import substitution failed. Russian domestic production has come to a complete halt, unable to replace lost companies, products and skilled labor.

The weakening of the Russian innovation and production base led to a sharp rise in prices and consumer discontent.

Russia has lost businesses that account for about 40% of its gross domestic product (GDP). Russia's economic base is also weakened by an unprecedented outflow of capital and population.

President Putin is using apparently unsustainable fiscal and monetary interventions to correct the structural weaknesses in the economy that have run the country for the first time in years and reduced its foreign exchange reserves, even with current high energy prices..

The Kremlin's finances are in a much more difficult situation than is commonly believed.. Russian financial markets in the worst position in the world. Russia is practically cut off from international money markets, which limits its ability to raise capital to restore its own crippled economy. Russian domestic financial markets reflect both current economic conditions and the country's outlook.

As noted in the study, some experts and politicians in the West express concern that sanctions do not affect Russia enough to justify the damage they cause to those who apply.



One reason for this, the study says, is that the Kremlin "

The general conclusion of the study is that the Russian economy is “completely mutilated” by Western sanctions and the mass exit of international companies.

Recall that from time to time in the West there is criticism of Western sanctions.. Hungarian Prime Minister Viktor Orban calls for a new strategy.

In particular, Orban repeatedly made statements like that Europe "

Against this background, Russia is constantly trying to persuade Ukraine to negotiate.




Add a comment
:D :lol: :-) ;-) 8) :-| :-* :oops: :sad: :cry: :o :-? :-x :eek: :zzz :P :roll: :sigh:
 Enter the correct answer