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Russia boasts it is beating sanctions, but its longer-term prospects are bleak (www.cnn.com)

submitted 9 months ago by [email protected] to c/[email protected]

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Russian President Vladimir Putin has taken to gloating about Russia’s resistance to international sanctions and its supposed economic resilience, despite the best efforts of the United States and its G7 partners to choke off Moscow’s oil revenues and starve it of military technology.

Scoffing at Europe’s economies, Putin said at a recent event: “We have growth, and they have decline… They all have problems through the roof, not even comparable to our problems.”

It’s true that, as the second anniversary of Russia’s full-scale invasion of Ukraine approaches, the Russian state is earning billions from oil and diamond exports, its military factories are working flat out, and many Russian banks can still access the international financial system.

Russia has adapted to the wide range of sanctions imposed by Western nations. Far from buckling under their weight, the Russian economy is in fact 1% larger than it was on the eve of the invasion.

But the longer-term outlook is far less rosy. War is distorting the economy and sucking resources into military production at an unsustainable pace.

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[–] [email protected] 21 points 9 months ago

EU might be hurting, but in the process it became independent of Russian oil but mostly gas exports. So yes, they may be better off now (and that’s a big maybe with the big propaganda engine running) but in the long run the EU is better off with investments in renewables paying off. I hope the EU won’t trust them with a penny after this and will keep the restrictions intact in the future.