Sanctions against Russia are working because Vladimir Putin’s economy is paralyzed.
This conclusion comes from a Yale University study, adding that those who think that sanctions have no consequences on the Russian economy lack knowledge in economics.
The Yale study was made possible through a detailed analysis of all available data and information, using Russian-language documents.
But also various sources from international trading partners, as well as thanks to the processing of data on shipments, ending in a concluding analysis of the conditions of the Russian economy five months after the invasion of Ukraine.
The bottom line is clear: the sanctions are catastrophically paralyzing the Russian economy, as Russia’s position as an exporter of raw materials has been irreparably damaged, as the country now negotiates from a weak position with the loss of its traditional markets.
Russian imports have fallen for the most part, and the country must face difficult challenges to secure important products, including technological materials, currently facing a reduction in supplies for the domestic economy.
Russian domestic production has stopped completely and there is no possibility to replace activities, products and jobs.
A situation that has caused an immediate increase in prices as well as concern among consumers. With the exodus of foreign companies, Russia has lost a quota of up to 40 percent of its GDP, wiping out the fruits of foreign investment in the past 30 years.
Putin is relying on an unsustainable monetary fiscal intervention to try to address structural economic weaknesses.
The result of this decision is the depletion of foreign reserves and the finances of the Kremlin are in great difficulty.
Russian financial markets are considered to be the worst this year, as Russia has been left out of international markets, limiting its capacity to access the financing necessary to revive its economy.
Each of the conclusions of the study is argued and supported by a clear analysis of the figures and data collected.