While Russia can claim some symbolic victories, the full impact of Western sanctions nearly two months into the Russian-Ukraine war is starting to be felt in very real ways.
. While Russia can claim some symbolic victories, the full impact of Western sanctions is starting to be felt in very real ways.
“The government wants to paint a picture that things are not as bad as they actually are,” said Michael Alexeev, an economics professor at Indiana University who has studied Russia’s economy in its transition after the collapse of the Soviet Union.— The country is enduring its worst bout of inflation in two decades. Rosstat, the state’s economic statistics agency, said inflation last month hit 17.3%, the highest level since 2002.
Meanwhile, Treasury officials and most economists urge patience, saying that sanctions take months to have their full effect. If Russia can't get appropriate amounts of capital, parts or supplies over time, that will cause even more factories and businesses to shut down, leading to higher unemployment.
Benjamin Hilgenstock and Elina Ribakova, economists with the Institute of International Finance, estimated in a report released last month that if the European Union, Britain and the U.S. were to ban Russian oil and natural gas, the Russian economy could contract more than 20% this year. Current projections forecast a 15% contraction.
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