- Joined
- Dec 17, 2013
- Messages
- 11,693
- Supports
- Brazil, Arsenal,LA Aztecs
I don't see how managing to occupy more land, destroy ukrainian hope of recovering it, managing to maintain a normal economy and showing the west as weak and unreliable is not a win for russia. Sure it cost them a lot but it's still a win.
Russia's economy is anything but normal. Inflation rose very high in 2022 and while its dropped off, its still higher in Russia than Western economies. They also have very high interest rates which is and will continue to be problematic for Russia. They've shifted to a war time focus on economy which generally provides a short-term boost which has helped them but the opportunity cost is that they aren't actually developing a strong foundation. IIRC Russia is now spending about 8% of their GDP on military, compared with only about 3% of US GDP and US military innovation is far ahead of Russia and will continue to remain so. Russia will now lag behind on technological innovations and they still depend too much on resource exportation, which has always been a weaknesses of the Russian economy. It's true that pivoting to more trade with China and India has mitigated to some degree the removal of Western trading partners and its also true that a country like Germany became too dependent on Russia and was hurt as well. However, they are now very dependent on China in a lot of ways which is another long term weakness. Overall, this is definitely not "normal" and it's not sustainable. Part of what has helped Russia compensate short term is them dipping into their "rainy day" fund which is now a little under half what it was before the war. There are going to be long term repercussions that will see Russia fall further behind the leading economies on diversity and innovation and that's not going to help them.
No doubt some media outlets might have hyped up the effects of sanctions too much but to say Russia's economy is doing better than before or to say sanctions have "backfired" (as some media outlets have said) is also going too far the other direction. I don't think any economists actually believed that Russia's economy would collapse or anything like that.