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Russian economy collapsing amid crippling sanctions, study says

The Russian economy is on the brink of collapse as international sanctions begin to take hold. A Yale University study published this month.

According to the authors, the analysis, based on consumer, trade and shipping data, shows the economy is on the brink of collapse as foreign companies pull out and sanctions continue.

“Our analysis reveals that corporate exits and sanctions are devastating the Russian economy,” the authors write.

“As Russia’s invasion of Ukraine enters its fifth month, a common narrative emerges that global unity against Russia has somehow evolved into an economic war of attrition that is hitting the West.” says the study. read, adding, “This is simply not true.”

of the ruble Amazing performance as a result of unprecedented economic isolation Some analysts attribute it to the country’s lucrative commodity markets, which rely on oil and gas exports.

Russian President Vladimir Putin has demanded that these products be purchased only in rubles, and the central bank has restricted foreign holders of Russian stocks and bonds from receiving dividends abroad. Some point out.

Russia invaded Ukraine on February 24th.
Alexei Maishev, Sputnik/AP

But Russia is currently trading commodities from a weaker position, forcing it to pivot away from supply for most of Europe to substandard trading on secondary markets, according to a Yale University study.

And the authors argue that Putin’s “apparently unsustainable” monetary policy has pushed the Russian government into the red.

About 40% of Russia’s gross domestic product was lost due to the withdrawal of foreign companies from the Russian economy, according to the study, “almost all of 30 years’ worth of foreign investment has been reversed.”

Yale University professors also say production of goods inside Russia has effectively stopped, causing supply shortages and pushing up consumer prices.

It has shaken confidence in the system and caused an outflow of capital and people, the authors write.

“There is no way out of economic oblivion for Russia as long as allies continue to unite and maintain and intensify sanctions pressure on Russia,” the study concludes.

Russian economy collapsing amid crippling sanctions, study says

Source link Russian economy collapsing amid crippling sanctions, study says

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