Russia: Sanctions ‘devastating’ economy says commentator
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The scale of the damage inflicted by western sanctions on the Russian economy has been uncovered by research at Yale University. Russia’s economy faces collapse with thousands of companies abandoning the country in the wake of the invasion of Ukraine, taking with them up to five million jobs.
The scale of the economic damage inflicted by western sanctions has been uncovered by research at Yale University.
Sky News Australia reported on Thursday: “A Yale University study has found Russian sanctions are having a devastating impact on the economy.
“The government has brought in billions of dollars in energy sales but around 1,000 companies have pulled out of the nation since February, equalling 40 per cent of the GDP and costing up to five million jobs.
“Crucial imports from China have fallen by more than half while Russian President Vladimir Putin is facing massive shortages of parts and technology.
“Moscow has stopped the release of official economic statistics but the study found wider data.”
Western countries imposed unprecedented sanctions against Russia after it sent tens of thousands of troops into Ukraine on February 24, impairing Moscow’s access to international economic and global trading systems.
Sanctions have frozen around half of Russia’s international reserves managed by the central bank, which on Thursday recommended ordering state companies to transfer their FX holdings in currencies of countries that have targeted Moscow with sanctions to those of countries that have not.
“The blocking of Russian assets by unfriendly countries, as well as operational restrictions on settlements in the world’s major reserve currencies, create risks for citizens and businesses when using the U.S. dollar and the euro,” the central bank said in a statement.
Russia calls countries that have deployed sanctions “unfriendly”. Russian households held around $85 billion worth of dollar and euro cash, Central Bank Governor Elvira Nabiullina said in July, adding that cash dollars will circulate in Russia even “under the most apocalyptic scenario.”
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The finance ministry said it shared the central bank’s concerns about corporate holdings of “unfriendly” currencies.
The bank also said it would introduce additional measures aimed at reducing banks’ operations in dollars and euros, accelerating a de-dollarisation drive that officials hope can help shield Russia’s economy and citizens from some restrictions.
With the battle for Donbas underway, Ukrainian President Volodymyr Zelensky this week described the pressure his armed forces were under in the Donbas region in eastern Ukraine as “Hell”. He spoke of fierce fighting around the town of Avdiivka and the fortified village of Pisky, where Kyiv has acknowledged its Russian foe’s “partial success” in recent days.
The Ukrainian military said on Thursday Russian forces had mounted at least two assaults on Pisky but that its troops had managed to repel them.
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Ukraine has spent the last eight years fortifying defensive positions in Pisky, viewing it as a buffer zone against Russian-backed forces who control the city of Donetsk about 10 km to the southeast.
General Oleksiy Gromov told a news conference that Ukrainian forces had recaptured two villages around the eastern city of Sloviansk, but had been pushed back to the town of Avdiivka’s outskirts after being forced to abandon a coal mine regarded as a key defensive position.
The Russian defence ministry confirmed its offensive.
It said its forces had inflicted heavy losses on Ukrainian forces around Avdiivka and two other locations in Donetsk province, forcing Kyiv’s mechanised and mechanised infantry units to withdraw.
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