Strength of strength is smaller: how sanctions destroy the economy of the Russian Federation

Russia has been under unprecedented Western sanctions for over a year. But despite the fact that the aggressor still has money for war against Ukraine, the sanctions of Ukrainian allies are slowly, but kill the Russian economy. The situation in the Russian economy is losing stability, although the Kremlin continues to assure the population of the country in the opposite.

However, Western sanctions and massive flow of transnational companies have seriously harm the country's economic potential, Business Insider reports, citing an article by Jeffrey Zonnenefeld and Stephen Tian, ​​Jeffrey Zonnenefeld. According to experts, against the background of sanctions, Russia has already lost $ 253 billion in private capital.

The money was withdrawn from the financial system of the war after the start of the full -scale invasion of the Armed Forces of the Russian Federation into Ukraine. And, according to researchers, Moscow has deprived access of Western technologies and experience that Russian companies need. At the same time, foreign direct investment was almost completely exhausted. "We cannot get trapped, thinking that Putin has all well, but should not give up effective pressure measures on him," experts say.

In their material, Jeffrey Zonnenefeld and Stephen Tian indicate other reasons why the Russian economy suffers. For example, according to their data, since February 2022, about one million Russians have fled to other countries. Now the Russian Federation itself has a lack of labor, which is now estimated at five million employees. At the same time, the Russian authorities themselves worsen the situation in the economy.

For example, it introduced strict control over the movement of capital, which made Russian assets virtually depreciated in the world markets. And the transfer of expropriate assets from Western firms does not make Russia richer. Meanwhile, sanctions have deprived Russian companies with the opportunity to issue new stocks or bonds in the western markets. "Russia, which has never supplied any finished products - neither the industrial nor the consumer - to the world economy, paralyzed.

It is far from economical superpowers, since almost all its raw materials can easily be replaced by supplies from other countries. The military machine moves only through the cannibalization of enterprises, which are now controlled by the state, "the material reads. By the way, the leading economic specialist and chairman of the Novaya Country Charitable Foundation Andriy Novak believes that the Russian economy no longer withstands the pace of war.