A study by Yale University comes to the conclusion that Western sanctions are clearly affecting Russia. The economy was “thoroughly paralyzed” – and Putin’s energy income plummeted. According to the researchers, Russia is almost completely dependent on Europe.
According to a study, the sanctions imposed by Western countries against Russia have massively damaged the country’s economy. The sanctions “not only worked,” but “thoroughly paralyzed the Russian economy at all levels,” according to the recently published report by the Yale School of Management. In addition, Russia’s income from oil and gas exports has recently fallen significantly.
The study, written by economists and management experts, also challenges the assumption that monthly revenues from oil and gas exports in the tens of billions of dollars kept the Russian economy afloat. Energy revenues have even fallen over the past three months.
The US researchers see Russia facing an “unsolvable” problem in the event that European states become independent of Russian natural gas, since 83 percent of Russian energy exports have so far gone to Europe. “Russia is much more dependent on Europe than Europe is on Russia,” the report said.
The punitive measures taken by Western states and the exodus of international companies as a result of the Russian war of aggression against Ukraine have brought a significant proportion of economic activity in the country to a standstill.
Domestic production in Russia has “come to a complete standstill” and there is “no capacity to replace the necessary companies, products and talent,” according to the 118-page study. Around 1,000 foreign companies have left the country, which means the loss of up to five million jobs. Industrial production collapsed.
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According to their own statements, the researchers used data from companies, banks and trading partners of Russian companies as the basis of their analysis, since Moscow has not published important economic data for a long time.
The study cites the car industry as a particularly drastic example: Sales figures have fallen from 100,000 to 27,000 per month, and because parts from abroad are missing, cars are being manufactured without airbags, automatic transmissions and safety systems such as ABS.
Retail sales and consumer spending have recently fallen by 15 to 20 percent compared to the previous year. Imports have collapsed, even from friendly China, Russia is importing half less.
