How Much Longer Can the Russian Economy Endure?

Questions arise about the resilience of the Russian economy, almost four years after the start of the war, due to the failure of Western sanctions.

According to the New York Times, the US and Europe are hesitant to punish banks that violate sanctions, allowing Russia to continue cross-border trade.

Vladimir Putin is exploiting Trump's policy of isolationism and strengthening ties with China and India. At the Shanghai Cooperation Organisation summit, the shift of the economic center of gravity towards the East was evident, with agreements such as the Siberia-China gas pipeline.

The Russian economy is showing signs of fatigue, with forecasts of slowing GDP growth. Sberbank's Stefan Greif reports 'technical stagnation' and calls for lower interest rates. The Central Bank has lowered the key rate, while inflation is limited.

Alexander Gabuev estimates that the economy can support the war effort for another 18-24 months.

Despite the possibility of accelerating the process through economic measures, such as lowering the price of Brent, the West prefers to increase defense budgets.

Source: ot.gr