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Are sanctions on Russia feasible? Putin’s economy is paralyzed

They are working Sanctions on Russia? Yes, because Putin’s economy is paralyzed. The obvious answer comes from a study he did Yale School of Management – Head of the Executive Leadership Institute. Mention it in a tweet Carlo Alberto Carnival Maffei, a professor at the Bocconi University School of Management, is convinced that “those who argue that sanctions have no effect on Russia are utterly ignorant of the economy and of blatant geopolitical ill will”. Referring to the discussion that also moved the discussion among leaders in the Cernobbio Forum and contains an implicit response to the position supported by the Lega case, Matteo Salvini: “Sanctions do no harm to Russia, they must be rethought.”

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The mobilized work at Yale University was built through a thorough and comprehensive analysis of all available data and information. “Our team of experts, using Russian-language documents and first-hand data sources, including those on high-frequency consumption, data verification, information published by international trading partners and complex data processing on shipments, has produced a comprehensive analysis on the conditions of the Russian economy five months after the Invasion of Ukraine. The conclusion is clear: sanctions are catastrophically crippling the Russian economy ”, is the introduction that explains the title: “ Business downturns and sanctions are crippling the Russian economy.”.

Following are the conclusions of the study:

– Russia’s position as a commodity exporter has deteriorated irreversibly as it is now retreating from a weak position with the loss of its traditional core markets and facing difficult challenges by switching to Asia through gas exports.

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Russian imports have largely collapsed and the country faces tough challenges to secure essential goods, including parts and technology. It suffers from severe shortages of supplies important to the local economy.

– Russian domestic production has completely stopped with the inability to make up for lost assets, products and talents; The loss of innovation and internal production capacity has led to higher prices and consumer anxiety.

With the exit of foreign companies, Russia lost a share equal to 40% of its GDP, negating the increase in foreign investment over the past 30 years, as it experienced a simultaneous flight of capital and people from its economic base.

Putin is resorting to clearly unsustainable fiscal and monetary intervention to try to address structural economic weaknesses. The budget is running from a deficit for the first time in years, and foreign reserves have dried up. The Kremlin’s finances are in much more trouble than you think.

– The Russian financial markets are the worst in the world this year, both looking at current indicators and expectations, and despite strict capital control, they have suffered from persistent and persistent weakness with the contraction of liquidity and credit. In addition, Russia has been largely isolated from international markets, limiting its access to financing needed to revive its economy.

Looking to the future, there is no way out of Russia’s economic oblivion as long as the allied nations remain united in maintaining and increasing sanctions.

The thesis of those who argue that the Russian economy has recovered is simply not true. The facts are that the Russian economy, by any scale and at any level of analysis, is faltering, and now is not the time to rein in sanctions.

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Each of the study’s conclusions is discussed and supported by a detailed analysis of the numbers and data collected. There is no other way to find an answer to the question: do sanctions on Russia work? Naturally, the consequences should also be brought to bear on the economies of the countries on which the sanctions were imposed, starting with the Italian one. But even those who want to argue that sanctions are not effective and helpful in achieving their goal, which is to weaken the Russian economy to the point of collapse, have to look for and find data that agrees with their thesis. (From Fabio Insinga)

Harold Manning

"Infuriatingly humble social media ninja. Devoted travel junkie. Student. Avid internet lover."

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