RUSSIA'S WAR ECONOMY

So far, Moscow has defied the odds following Western sanctions because of its war with Ukraine. But can it prolong this defiance?

-  DIVYA MALHOTRA

When Russia stormed into Ukraine in February 2022, the West responded with an economic blitzkrieg. Sanctions were meant to strangle Moscow’s war machine, cut off its financial arteries, and leave it gasping for survival. Two years later, not only has Russia survived—it has found ways to thrive. The economy has proven more resilient than anyone in Washington expected, raising a crucial question: Did the West underestimate Russia's ability to adapt, or is this economic endurance just a temporary illusion?

As per Russia government sources, trade with Asian countries saw significant expansion, with exports and imports increasing by 7.6% and 1.9% respectively. Likewise, Russia's trade ties with the African continent also bolstered. Central Asian nations, Turkey, and even Middle Eastern partners became intermediaries, helping Moscow continue importing restricted goods—everything from semiconductors to machine tools.

The economic pivot towards Asia and Africa helped Russia to compensate (partially) for the losses caused by West-led sanctions. Trade with European countries registered a southward trend, with exports falling by 20.4% and imports decreasing by approx7%. Commerce with the American continent also fell by approximately—1.5 per cent.

However, overall, the West's economic noose has not quite tightened the way policymakers had hoped.

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