Russia loses US$170 billion of potential exports due to sanctions

Russia's economy stabilised two years after the outbreak of war, but the war and sanctions continue to have a significant impact on its development: Russia has lost US$170 billion in potential export revenues.

Source: Financial Times

Quote: "Two years into the war, Russia’s economy appears to have stabilised, supported by nearly 10 per cent of GDP in war-related fiscal stimulus and sanction coalition countries’ reluctance to stop buying Russian oil and gas. The Russian government’s statistics agency estimates GDP growth of 3.6 per cent in 2023 following a moderate contraction in 2022," writes FT.

Even if the sanctions did not have the devastating impact that was initially anticipated, Russia lost approximately US$170 billion in exports as a result. Russia's growth has been significantly slower than that of other raw material exporters, and its medium-term prospects are bleak, according to Financial Times.

Background: It was reported earlier that the Russian economy is so dependent on military spending that it cannot afford to win or lose the war.

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