Sanctions Are Working: Russian Economy Getting Squeezed Tight
Economy will shrink this year and next, economist says
The unprecedented amount and scope of economic sanctions which the United States, and its partners across the globe, have imposed on Russia and key Russian individuals is having a significant effect, according to an economist in Washington DC.
The United States, European Union and a number of other countries have been hitting Russia with tough economic sanctions ever since Russian leader Vladimir Putin launched his all-out invasion of the sovereign and democratic Ukraine to Russia’s west, at the end of February.
A who’s who of major global corporations have suspended operations in Russia, as well.
While it's clear Putin had expected a quick victory in Ukraine, Ukrainian president Volodymyr Zelenskyy has led his people in an unexpected opposition to what has become an increasingly brutal incursion which has indiscriminately targeted civilian targets.
New car sales have plunged an astounding 78.5 percent in April, year-over-year, according to Elina Ribakova, deputy chief economist at IIF, a global association of the financial industry based in Washington DC.
“This is an important indicator of Russia’s consumer sentiment,” she tweeted.
Expect the Russian economy to contract “significantly” in 2022 and subsequent contraction in 2023, Ribakova added.
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