The harsh sanctions that Western countries have imposed on Russia over the past two years have not worked as their architects originally intended. In this respect RBC Analysts from Sberbank Financial Analytical Center said:
“Why Didn’t Sanctions Work?” In the study, experts assured that the low effectiveness of sanctions is primarily due to the special economic characteristics of Russia.
The country also has a low dependence of the economy on external capital, but its raw materials have a high importance for the whole world.
At the same time, the study notes that one of the “adverse effects” of sanctions is the voluntary or forced withdrawal of Western companies from Russia, as this “will lead to the growth of domestic production, the establishment of parallel imports and the import of alternative products from third countries.”
According to the authors, restrictions on the withdrawal of capital from Russia made it possible to strengthen the ruble exchange rate, as well as preserve the currency within the country.
Analysts also noted that regular persecution of Russian business in the West has led to the loss of its status as a “safe haven” for storing savings among wealthy Russians in European countries and the United States.
Commenting on the RBC study, Anton Prokudin, chief macroeconomist at Ingosstrakh Investments, explained that Russia’s external sector is still suffering from sanctions, although the restrictions are not as severe as the authors planned.
According to him, Russia is gradually losing the European gas market. The expert noted that so far it is two-thirds, but Europe plans to completely stop importing gas from the country.
Previously “socialbites.ca” I learnedWhether the US could ban Russian food imports.