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
Israeli Army Radio's diplomatic correspondent quoted a senior Israeli official as saying: So he [Trump] decided to cut off contact. That might still change, but that’s the situation right now
Israeli Army Radio's diplomatic correspondent quoted a senior Israeli official as saying: Trump’s circle told him [Dermer] that Netanyahu was manipulating him, and there’s nothing Trump hates more than being portrayed as someone being played
Senior Palestinian official to Al Mayadeen: Meetings between the Israelis, Egyptians, and Qataris are all centered around the Israeli proposal, which does not guarantee an end to the war [on Gaza]
Senior Palestinian official to Al Mayadeen: “Israel” is threatening to expand the ground offensive if Hamas rejects the proposal
Senior Palestinian official to Al Mayadeen: Hamas rejects the Israeli proposal, viewing it as failing to guarantee an end to the war
Senior Palestinian official to Al Mayadeen: “Israel” is sticking to its proposal, and insists there is no alternative offer on the table for negotiation
Senior Palestinian official to Al Mayadeen: The meetings between the Israelis and the Egyptians and Qataris all revolve around the Israeli proposal
The administration was clearly looking for an off-ramp for this campaign against Ansar Allah, NBC News reports, citing US official
Trump's operation against Ansar Allah cost more than $1 billion, NBC News reports, citing US official
White smoke signals new pope elected: AFP

Russian economy immune to sanctions: The Economist

  • By Al Mayadeen English
  • Source: The Economist
  • 11 Mar 2024 19:05
  • 3 Shares
4 Min Read

Positive economic indicators could bolster Russian President Vladimir Putin's position as Russia's presidential election approaches.

  • x
  • Russian President Vladimir Putin listens to Head of Russian State Space Corporation Roscosmos Yuri Borisov during their meeting at the Kremlin in Moscow, Russia, Monday, March 11, 2024. (AP)
    Russian President Vladimir Putin listens to Head of Russian State Space Corporation Roscosmos Yuri Borisov during their meeting at the Kremlin in Moscow, Russia, Monday, March 11, 2024 (AP)

An op-ed by The Economist on Monday detailed the economic trajectory of Russia in the two years since the start of the war in Ukraine, stating that despite initial fears of a financial collapse in 2022, the Russian economy has continuously defied pessimistic forecasts.

Instead of facing a catastrophic downturn, the economy experienced a recession of lesser severity and shorter duration than anticipated. Moreover, while inflation emerged as a recent concern, even prompting worries from Putin himself, recent data suggests a potential stabilization in prices.

Overall, data suggests that the Russian economy is rebounding once again. A report expected to be published on March 13th indicates a decrease in monthly inflation in February compared to the end of the previous year. Year-on-year inflation rates are projected to stabilize, with forecasts suggesting a potential decrease to just 4%.

According to the report, these figures could bolster Putin's position as Russia's presidential election, set to begin on March 15th, approaches.

Last year, Russian inflation surged due to increased government spending on various sectors amid the war in Ukraine. The fiscal splurge led to heightened demand for goods and services, resulting in price increases.

The labor market also faced challenges, with shortages exacerbated by military conscriptions and emigration.

Read more: Venezuela increasingly becoming immune to US sanctions

Two entities claim credit for the economic turnaround. The finance ministry touts exchange-rate controls, while the central bank emphasizes its policy of significantly raising interest rates since July 2023, which has encouraged saving and curbed lending.

Despite tough measures, Russia appears to be heading for a "soft landing," where inflation slows without severely impacting the economy. GDP growth remains positive, unemployment is low, and corporate distress is minimal. The Moscow Exchange anticipates increased initial public offerings this year, reflecting investor confidence.

Related News

Trump to NBC News: 'Russia should give up all of Ukraine'

Russia vows retaliation against new US sanctions on energy sector

Russia's economic resilience is partly attributed to past stimulus efforts, with corporations and households maintaining large cash reserves. Sanctions evasion has further boosted the economy, as companies have adapted supply chains and established new trading relationships, particularly with China.

However, concerns persist regarding inflation expectations and potential economic vulnerabilities, such as currency depreciation and fluctuating oil prices. Nonetheless, Russia's economy appears to be on a path to recovery once again.

Global Shift Away from Dollar Dominance

The war in Ukraine, now entering its second year, has not only brought to light the ineffectiveness of Western sanctions against Russia but has also backfired on European countries that relied heavily on Russian gas. 

Russia's resilience against sanctions suggests that a rapid shift to a multipolar world is in the making, especially considering that the BRICS organization has recently come to include new members, including a key US ally, Saudi Arabia.

As de-dollarization gains momentum, questions arise about the future of US economic hegemony and its implications for global economic dynamics. Discussions about the creation of an alternative financial market and reserve currency have been rapidly gaining traction recently.

Read more: US economy 'too strong' for sanctions to undermine dollar: Treasury

In a desperate attempt to try to contain Russia, the US recently introduced 500 sanctions targeting individuals and entities allegedly affiliated with Russia over the war in Ukraine. They were introduced as a result of Russian opposition politician Alexei Navalny who died on February 16.

The US blamed Russia for Navalny's death despite the fact that no evidence pointed to it. On the day of his death, US officials announced they would discuss a possible response with their allies, leading many to believe that Washington was possibly behind Navalny's death.

This also comes against the backdrop of the recent defeat of Ukrainian forces in the city of Avdiivka, which fell under Russian control, an event that highly frustrated Western countries. The fall of the Ukrainian city coupled with Russia's economic resilience has indeed driven Western leaders crazy. Even more concerning is the reality that Russia has emerged as an example for other nations in how to resist US sanctions.

The West is currently mulling unlocking frozen Russian assets to fund the war in Ukraine. The IMF warned that doing so could significantly impact the global monetary system and entail unforeseen risks.

  • US sanctions on Russia
  • Russia
  • Russian Central Bank
  • Putin
  • Russian special military operation
  • Russian economy
  • Sanctions on Russia
  • Vladimir Putin

Most Read

Pro-Palestinian protesters march toward the US Immigration and Customs Enforcement (ICE) headquarters, Saturday, April 5, 2025, in Washington (AP)

US House to vote on bill criminalizing boycott of 'Israel'

  • Politics
  • 3 May 2025
Throughout Operation Prosperity Guardian, current and former US military and intelligence officials expressed disquiet at the enormous “cost offset” involved in battling Ansar Allah. (Al Mayadeen English; Illustrated by Zeinab El-Hajj)

Ansar Allah triumphant: US facing Red Sea defeat again

  • Opinion
  • 3 May 2025
Pakistan downs an Indian jet and hits a military base in Kashmir escalation.

Pakistan downs 3 Indian jets, hits military base in Kashmir escalation

  • Politics
  • 7 May 2025
Yemeni missile hits Ben Gurion Airport as interceptors fail

YAF targeted Ben Gurion with hypersonic ballistic missile: Saree

  • MENA
  • 4 May 2025

Coverage

All
Gaza prevails against genocide

Read Next

All
UN experts warn: Stop the genocide or witness Gaza's end
Politics

Stop the genocide or witness end of life in Gaza: UN experts warn

Israeli police attack mourners as they carry the casket of killed Al Jazeera veteran journalist Shireen Abu Akleh during her funeral in occupied al-Quds, Friday, May 13, 2022. (AP)
Politics

Israeli sniper who killed journalist Shireen Abu Akleh identified

The Department of Defense logo is seen on the wall in the Press Briefing room at the Pentagon, Oct. 29, 2024, in Washington. (AP)
Politics

Pentagon’s unused properties drain billions in taxpayer funds

Haaretz
Palestine

Israeli military avoids calling up unwilling reservists: Haaretz

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