Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen's correspondent: Israeli occupation forces bombing the Gaza Strip
Al Mayadeen's correspondent: Ceasefire in Gaza takes effect
The Kremlin: Negotiations toward a settlement in Ukraine are currently at a complete standstill
Abu Mujahid: The steadfastness of the Palestinian people and the Resistance thwarted the displacement plan and allowed us to secure the best possible terms in an agreement to halt the genocidal war
Abu Mujahid: We salute whosoever made sacrifices in support of the Palestinian people, foremost among them the martyred Sayyed Nasrallah and Sayyed Safieddine, as well as the people of Yemen and Iran
Abu Mujahid, head of the media office of the Popular Resistance Committees, to Al Mayadeen: The people of Gaza have sacrificed and given their most precious offerings for the Al-Aqsa Flood
Al Mayadeen's correspondent in Gaza: Israeli artillery shelling targeted Khan Younis and the al-Bureij and al-Maghazi refugee camps
Captives may be released as early as Saturday and by Monday at the latest: Source briefed on the details of the agreement.
Netanyahu set to convene security cabinet at 1500 (1200GMT) and government at 1600 (1300GMT) to approve the deal: Source briefed on the details of the agreement
Within the first 24 hours, the Israeli military will complete the first phase of partial withdrawal: Source briefed on the details of the agreement

Have Western sanctions ruined Russia’s economy?

  • Natalie Jones Natalie Jones
  • Source: Al Mayadeen English
  • 1 Jan 2023 23:44
  • 4 Shares
6 Min Read

One must consider whether Western claims about the Russian economy are valid or whether perhaps Western leaders are trying to distract their populations from the collapse of their own economies.

  • x
  • Have Western sanctions ruined Russia’s economy?
    Have Western sanctions ruined Russia’s economy?

According to Ursula Von der Leyen, the consequences of sanctions imposed on Russia have made a significant impact on Russian industry. It is no secret that the West wanted to ruin Russia’s economy with President Biden stating that the West wanted to reduce the ruble to rubble. Ursula Von der Leyen even claimed that the Russian army is removing chips from dishwashers and refrigerators in order to fix military equipment. One must consider, however, whether claims made by Western leaders about the Russian economy are valid or whether perhaps, in actual fact, Western leaders are trying to distract their populations from the collapse of their own economies.

Firstly, it is important to note that in the period prior to the Russian special military operation in Ukraine, Russia did have a grounded, stable economy. It had one of the lowest debt levels in the world – around 18.2% of GDP in 2021, according to certain sources. This can be compared to a country like the UK where the debt level was 102.78% of GDP in Q4 of 2021. Furthermore, during the said period, Russia had a significantly high reserve balance: $615.6 billion. Reserves are critical to funding internal projects, meeting obligations, and crucially maintaining liquidity in the case of an economic crisis. It is also important to note that Russia does not just export oil and gas; it is also a key exporter of various other key commodities. According to the World Economic Forum, it is the world’s largest exporter of wheat, a big exporter of semi-finished iron, and a large supplier of nickel and nitrogen-based fertilizer. In terms of raw materials, it is the second-largest exporter of cobalt, which is used to make rechargeable batteries, and vanadium, which is used for large-scale energy and steel making.

Related News

The new ‘donor-nomics’ in Ukraine, thanks to Western governments and their taxpayers

Declassified: CIA’s covert Ukraine invasion plan

The ambition to destroy Russia’s economy and the livelihood of its population has not been realized by the West. In fact, Russia’s economy appears to have been remarkably resilient to Western sanctions. Of course, it is naïve to assume that the economy has not been affected by the mass withdrawal of Western companies and imposition of restrictions, such as the ban on Russian banks using SWIFT. Yet, it seems that Russia has established backup plans in order to effectively limit the impact of the measures imposed on it. For example, in 2014, Russia created its National Payment Card System “MIR” card, which was created in case of disconnection of cards from the international payment system. According to the National Payment Card System, more than 50% of Russians had at least one MIR card. This does allow for payment of purchases and cash withdrawals following the ban on the use of Visa and Mastercards issued by Russian banks. It also aims to ensure the uninterrupted processing of transactions performed with international payment card systems in Russia.

Furthermore, Russia has been able to redirect some of its supply of crude oil, which was previously being sold to Europe to Asia. India’s oil imports from Russia, for example, have been rising since February of this year. In addition, China’s crude oil imports from Russia soared 55% from a year earlier to a record level in May of this year. Clearly, it will take some time for the redirection of supplies to be established for Russia, which will temporarily affect the Russian economy. The Bank of Russia predicts a decline in GDP of around -4 to -6% for the last quarter of 2022. However, starting in mid-2023, the central bank expects the economy will move into a recovery phase – 1.5% to 2.5%.

In relation to interest rates, on September 16, 2022, the Bank of Russia decided to cut the interest rates in the country to 7.5%. This is in line with the levels that existed prior to the special operation. This was against a backdrop of reduced consumer demand and developments in business activity. With regard to inflation, the annual inflation declined in August to 14.3%, according to the Bank of Russia. In line with interest rates, the Bank of Russia predicts that inflation will be reduced to 4% in 2024. Furthermore, the Ruble has already bounced back to its pre-war level. It seems that Russia has been evidently affected by the raft of sanctions imposed on it by the West, but just for a short time. However, due to foresight and effective management of its economy, it has been able to minimize the effect of sanctions and is predicting a return to growth in 2024. 

The same thing cannot be said for a country like the UK where the BBC expects that the UK economy will plunge into a recession before the end of 2022 with inflation spiking to 14% and weak growth expected until 2024. The pound has fallen to a record low against the dollar and there is an expectation that interest rates will dramatically increase in the coming months. Combined with inflation and a cost of living crisis, many commentators anticipate that the UK’s economy may even fall into a depression. It is also not clear how the government will effectively manage and recover from this economic crisis, as much as it is unclear how future spending can be given the current level of government debt and low reserves balance. It seems that the West’s attempts to destroy Russia’s economy have backfired and are actually leading Western countries’ economies (such as that of the UK) that are faring far worse economically than Russia.

The views expressed in this article are solely those of the author and do not necessarily reflect Al Mayadeen’s editorial stance.
  • Nato
  • Russia
  • West
  • Russian special military operation
  • Sanctions on Russia
  • Nato Alliance
Natalie Jones

Natalie Jones

Independent journalist based in the UK

Most Read

All
Charlie Kirk Murder Mysteries Multiply

Charlie Kirk Murder Mysteries Multiply

  • Analysis
  • 26 Sep 2025
From the beginning, GB News has been a Zionist asset. Is there any part of UK society that is not infiltrated and colonised by the Zionist movement? (Al Mayadeen English; Illustrated by Zeinab el-Hajj)

Reform UK, GB News and the Zionist infiltration of the British far right

  • Opinion
  • 28 Sep 2025
Barrack explicitly asserted that the US is supplying the Lebanese army to fight its own people, even laughing at the idea that this support is intended to confront "Israel". (Al Mayadeen English; Illustrated by Zeinab el-Hajj)

Why the US is so open about its intentions for Lebanese civil war

  • Opinion
  • 30 Sep 2025
There is a great uncertainty over how the president will use the remaining three years of his term, to say nothing about his prospects for re-election. (Al Mayadeen English; Illustrated by Batoul Chamas)

Iranian opponents of diplomacy have definitively won the debate

  • Opinion
  • 4 Oct 2025

Coverage

All
The Ummah's Martyrs

More from this writer

All
Vladimir Putin’s meeting with Kim Jong Un: Impact on global politics

Vladimir Putin’s meeting with Kim Jong Un: Impact on global politics

Why should the decision of the British government to send depleted uranium to Ukraine be condemned?

Why should the decision of the British government to send depleted uranium to Ukraine be condemned?

Why does Western foreign policy need to change?

Why does Western foreign policy need to change?

How has global influence in the Middle East shifted?

How has global influence in the Middle East shifted?

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS