Newspaper: Sanctions against Russia were not as effective as the West expected

The Economist confirmed that Western sanctions against Moscow have not been as effective as expected, noting that Russia will achieve the world’s second largest trade surplus this year after China despite the sanctions.

An analytical article for the newspaper said: “It is worrying that the sanctions war is not going as expected so far.”

The newspaper pointed to sanctions against thousands of Russian companies and individuals, freezing half of Russia’s foreign exchange reserves, cutting off most banks from the global financial system, restrictions on oil imports from Russia, and Russia’s purchase of some important materials. such as electronic chips.

The newspaper expected that Russia’s isolation from Western markets “would cause havoc in Russia within 3-5 years.”

But she notes, however, that the “knockout” has yet to take place as Russia’s GDP will decline by 6% in 2022, well below the 15% expected by many in March last year.

She added that hydrocarbon exports have created a $265 billion Russian trade surplus this year, making Russia the world’s second-largest surplus after China.

The Russian financial system has also stabilized after the initial shock, and the country has been able to find new suppliers for some commodities, such as China, while Europe could face a downturn due to the energy crisis.

The newspaper wrote: “It turns out that sanctions weapons have their drawbacks. One of them is the time lag. Blocking access to technologies monopolized by the West will have a tangible effect only in years to come.”

Although Western GDP is much larger than Russia’s, the newspaper also mentioned Russia’s role in the global gas market and that 100 countries with a GDP of 40% of the world do not comply with the ban on various types of Russian exports. .

Source: Economist.

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