The U.S. and its allies have rolled out fresh sanctions against Russia this week, but the effort is sparking new discussion about how all of the unprecedented sanctions haven’t been hurting the country as much as expected. The moves over the past two years in response to Moscow’s invasion of Ukraine “have been more bark than bite, both for the Russian economy and the ruble
USDRUB,
,
” said Terry Haines, founder of Pangaea Policy, in a note. He added that “there’s no reason to believe that another round of sanctions deters Russia or gets it to rethink behavior.”
Russia’s economy is expected to grow 2.6% this year, according to January projections from the International Monetary Fund. That’s better than the 2.1% growth anticipated for the U.S. and the 0.9% expansion forecast for the euro area. After sanctions first began in February 2022, Russia’s economy shrank by 1.2% in 2022, but that was a smaller-than-anticipated decrease. There was then 3% growth in 2023, according to the IMF’s figures. For 2025, a 1.1% expansion is expected. “Russia’s economy has indeed surprised in terms of the strength of growth so far,” said the IMF’s director of communications, Julie Kozack, when asked during a news conference Thursday about the effectiveness of sanctions. There have been boosts from military spending and “quite a lot of social transfers,” which refers to government aid to households, she said. But she said there are “signs of overheating of the economy,” with inflation rising, and there should be “negative impact …
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USDRUB,
,
” said Terry Haines, founder of Pangaea Policy, in a note. He added that “there’s no reason to believe that another round of sanctions deters Russia or gets it to rethink behavior.”
Russia’s economy is expected to grow 2.6% this year, according to January projections from the International Monetary Fund. That’s better than the 2.1% growth anticipated for the U.S. and the 0.9% expansion forecast for the euro area. After sanctions first began in February 2022, Russia’s economy shrank by 1.2% in 2022, but that was a smaller-than-anticipated decrease. There was then 3% growth in 2023, according to the IMF’s figures. For 2025, a 1.1% expansion is expected. “Russia’s economy has indeed surprised in terms of the strength of growth so far,” said the IMF’s director of communications, Julie Kozack, when asked during a news conference Thursday about the effectiveness of sanctions. There have been boosts from military spending and “quite a lot of social transfers,” which refers to government aid to households, she said. But she said there are “signs of overheating of the economy,” with inflation rising, and there should be “negative impact …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]