Bofit: “Economic imbalances weighing on Russia’s output growth”
From Bloomberg, “Ukraine Allies Agree to Step Up Economic Pressure on Russia”.
UK Prime Minister Keir Starmer said some 25 allied leaders agreed on Saturday to keep tightening restrictions on Russia’s economy in an effort to draw President Vladimir Putin to the negotiating table to secure a cease-fire in its war with Ukraine.
“The effects of the sanctions on the Russian economy have been pretty profound,” Starmer told reporters at a press conference in London. “We shouldn’t underestimate the impact they’ve already had and by doubling down and increasing sanctions, that will cause even more pressure.”
European governments are reportedly cracking down on Russia’s shadow fleet. That may account for:
“Output growth slowed sharply in the beginning of this year…Russia’s foreign trade has suffered in recent months, causing the current account surplus to decline.”
Russia has resorted to crypto-currency payments for trade to avoid sanctions, and India just arrested a crypto-exchange boss who was helping Russia do that:
https://www.bbc.com/news/articles/ce30kvxyqe5o
Meanwhile, Russia has been blocking shipments of dual-use goods between China and Europe, causing turmoil on a rail line that’s part of China’s belt-and-road system:
https://archive.is/eaD5k#selection-1195.0-1195.74
Russia’s economic alliances are not running smoothly.
The U.S. press (except Bloomberg) has mostly dutifully turned its attention to the felon-in-chief’s simpering, mostly ignoring anything about Russia or Ukraine that isn’t felon-in-chief related. There is a lot going on, as the Bofit report shows.