Russian economy in worse shape than Moscow reports - Reuters
Kyiv • UNN
Russia's economy is only outwardly stable due to the war and Western sanctions. Dependence on opaque financing makes it unviable in the long term.
The Russian economy is in an increasingly unstable state due to the transition to a war regime and sanctions from the West due to Moscow's invasion of Ukraine. This is stated in a report by the Stockholm Institute for Transition Economics (SITE), UNN reports with reference to Reuters.
Details
The report, prepared for negotiations between European Union finance ministers, notes that despite relative stability, the Russian economy is only outwardly stable, and key imbalances and structural deficiencies are growing.
Fiscal incentives from the war economy have kept the (Russian - ed.) economy afloat in the short term, but reliance on opaque financing, distorted resource allocation and shrinking fiscal buffers makes it unsustainable in the long term. Contrary to the Kremlin's narratives, time is not on Russia's side
The publication notes that the EU has imposed 16 packages of sanctions against Russia since the beginning of the full-scale invasion of Ukraine. They targeted Moscow's main sources of income - exports of oil, gas and coal.
Recall
According to Bloomberg, European leaders are ready to wait for a possible meeting between Ukrainian President Volodymyr Zelenskyy and Russian dictator Vladimir Putin in Turkey before pushing the US to announce new sanctions against Moscow.
