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World News See other World News Articles Title: Russia's economy is paralyzed, and Putin's war machine survives on cannibalizing state-owned firms, Yale researchers say Russia's economy is paralyzed, and Putin's war machine survives on cannibalizing state-owned firms, Yale researchers say Story by jma@insider.com (Jason Ma) • 26 December 2023 Russian President Vladimir Putin. Contributor/Getty Images > Russia's economy is paralyzed, and its war machine survives by cannibalizing state-owned firms. Russia's economy is paralyzed, and its war machine survives on cannibalizing state-owned firms, according to two Yale researchers. In an op-ed in Foreign Policy recent commentary that cast President Vladimir Putin as one of 2023's big winners amid signs of economic resilience. But Western sanctions and the mass exodus of multinational companies from Russia that followed have inflicted huge costs on the nation's economy, they argued. "We cannot fall into the trap of thinking that all is good for Putin, and we cannot jettison effective measures to pressure him," Sonnenfeld and Tian wrote, noting that transferring "worthless" expropriated assets from Western firms to Putin's cronies doesn't make Russia wealthier. They also listed several other signs that Russia's economy has been reeling. Since Russia's invasion of Ukraine in early 2022, at least 1 million Russians have fled to other countries, including top tech talent. That's contributed to a labor shortage that's nearing 5 million workers and has stoked high inflation. Meanwhile, $253 billion in private capital left Russia between February 2022 and June 2023, Sonnenfeld and Tian said, citing the Russian central bank's own data. In addition, Russia has lost access to Western technology and expertise that its companies relied on, while foreign direct investment has nearly completely dried up. Making matters worse are strict capital controls that have rendered Russian assets valued in rubles virtually worthless on global markets. And sanctions that cut off Moscow from much of international finance have prevented Russian companies from issuing any new stock or any new bonds in a Western market. Borrow From Your Home While Keeping Your Current Mortgage Rate Borrow From Your Home While Keeping Your Current Mortgage Rate Ad LendingTree "Russia, which never supplied any finished goods—industrial or consumer— to the global economy, is paralyzed," Sonnenfeld and Tian said. "It is not remotely an economic superpower, with virtually all of its raw materials easily substituted from elsewhere. The war machine is driven only by the cannibalization of now state-controlled enterprises." Even the Kremlin is bracing for more pain ahead. On Monday, Russian central bank governor Elvira Nabiullina said she is expecting more sanctions in the future. While Russia has weathered the economic storms of the last two years, Nabiullina warned against thinking the country is "ten feet tall," according to a TASS state news agency translation. She added the pressure from sanctions may intensify, and the country must prepare for it. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: BTP Holdings (#0)
I'd like to hear Col MacGregor's take on the latest Ukraine situation. The only way Ukraine can make any headway is if Russia is unable to continue manufacturing needed war materials, like for their hypersonic missiles and other sophisticated hardware. Ukraine is bragging about having shot down several Russian aircraft in recent days and Russia doesn't seem to deny it. Might Russia's war effort be under some stress?
Might Russia's war effort be under some stress? From what I have seen the U.S. sanctions have hurt Russia's war effort. And recently the Uke's have hit a Russian ship docked in Crimea. The ship may have been loading war materiel or troops or both. ;) "When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke
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