In the latest example of how badly Vlad the Invader has screwed over his own country, financial experts think that Russia’s economy will fall back to 2007 levels and wipe out 15 years of gains. The Institute of International Finance (IIF) said Russia’s economy would likely shrink by 15% this year and 3% next year.
Among the main reasons that Russia’s economy is getting hit so hard is: (a) businesses ceasing to do business with or in Russia; (b) Russia is not able to export much due to sanctions; and (c) a “brain drain” as those who can are leaving the country. Plus, the IIF isn’t expecting hostilities to stop anytime soon, and that further sanctions are likely coming.
In a new white paper, we dive into recent efforts around #Russia #sanctions, looking in detail at impact of international financial-sector sanctions and restrictions on energy exports, as well as multinational companies’ exiting of the Russian market.
— IIF (@IIF) June 8, 2022
And that’s not the worst that could happen. If Europe starts going elsewhere for oil and gas that could cause an even bigger hit to the Russian economy. Even though Russia got some financial gain at the start of the invasion due to rising energy prices, this is something that’ll only work over the short term. In the longer term as Europe and other countries go elsewhere for energy Russia will be left high and dry.
I wish someone could ask Vlad the Invader if attacking Ukraine was worth all the trouble it would cause. He’s now in charge of a pariah state that no one wants anything to do with. He’s not getting the Russian Empire of the late 19th and early 20th century back (that’s when the Empire was at its greatest extent). Vlad pissed away everything for a chest pounding expedition to Ukraine, and now the Russians will have to live with the consequences for years to come.