Page 9 - Russia OUTLOOK 2024

He is right insomuch as the Russian economy has adapted well to the war demands he is demanding of it: to support the war in Ukraine without damaging standards of living. This approach will inevitably have a whole raft of serious consequences further down the road, but in the short term, Russia’s economy is easily outperforming Ukraine’s and producing the materiel needed for the war without cutting into the country’s standard of living.
It is also easily outperforming the bulk of Europe’s economies, which are all going into recession as a result of the combined problems of the polycrisis and extra costs – both direct and indirect – that supporting Ukraine has imposed on the EU, The sanctions have reached a point where a boomerang effect has kicked in, where they are hurting Europe more than they hurt Russia.
If the war comes to an end within the next two years, then Russia is well placed to recover quickly. However, long term the sanctions, which will remain in place for the foreseeable future, will doom Russia to stagnation.
9 Russia OUTLOOK 2024 www.intellinews.com