This International sanctions on Russia they feel more and more in their economyaccording to Ukrainian analysts who worked on their design, but they believe it More must be done to reduce Russia’s ability to finance the invasion.
“Russia has been preparing its economy for war for years. But the sanctions are working and the fortress they are trying to build is already cracking,” he said.
This Income Russia fell at least 45% in the first quarter from the oil and gas industry from 2023, thanks to the maximum price and partial bans imposed by coalition members.
Gas exports accounted for 60% of all Russian exports and the lion’s share of revenue.
In conclusion, only in the first two first months of 2023Russia’s fiscal deficit reached almost 90% of the projected annual deficit, and Russia had great difficulties in closing its budget deficitsaid Pavytska.
Russia has already used at least $53 billion of the more than $200 billion in the National Wealth Fund. to support its economy and finance its fiscal deficit, but by the end of the year its liquid assets are on track to run out.
With international investors out of the way, borrowing costs increase and an additional burden is placed on Russian state finances.
“ russian invasion repulsed on the battlefield, but sanctions are an important additional tool“Pavytska aims to weaken Russia’s economy so that it cannot finance the war and produce enough weapons,” said Pavytska.
The analytical group, of which Pavytska is a part, provides justification and monitors the effectiveness of measures taken by some of the world’s largest economies in response to the Russian invasion of Ukraine.
Its analytical materials present a case for some 60 Ukrainian and foreign economists and diplomats working on sanctions within the group led by Andriy Yermak, head of the Volodymyr Zelensky administration, and Michael McFaul, the former US ambassador to Russia.
Hard data allows Russia to find it It is becoming increasingly difficult to disseminate the alleged ineffectiveness of sanctions.
Equally damaging narratives that sanctions have had negative effects on other countries are equally unfounded, according to Pavytska, who explained that the sanctions coalition is trying to avoid harming their national economies.
“It is not in Ukraine’s business to say that other countries should stop their relations with Russia immediately,” he says.
Ukrainian analysts suggest ways and alternatives to step-by-step sanctions in order not to harm the economies of countries still dependent on Russia.
Looks like Russia Outperformed many expected in 2022Pavytska says its GDP has fallen by just over 2%, especially as it takes some time to establish an effective enforcement mechanism in the EU. Some important sanctions have been introduced recently.
But Russia found this cit’s getting harder and harder to close the cracks and the KSE Institute expect its economy to shrink by 6% in 2023.
Pavytska says her main focus will be on ensuring sanctions are enforced in the near future. efficient and homogeneousremoves spaces.
One tool would be to prevent “parallel imports” of sanctioned goods and services through third countries.
Adding new countries to the coalition of G7 and EU countries would help further undermine Russia’s ability to continue its occupation. Pavytska says so Even large markets such as India and China cannot compensate for the losses suffered by Russia..
In addition to targeting Russia’s nuclear power sector for its role in the occupation, additional sanctions expandable to the information technology industryPavytska explained to EFE.