Four years after Russia's full-scale invasion of Ukraine, the Russian economy is showing clear signs of structural exhaustion. The contours of a genuine economic endgame are coming into view for Russia. This is the finding of a new Kiel Report published by the Kiel Institute for the World Economy and the Stockholm Institute of Transition Economics.
  • Vergissmeinnicht@lemmy.caEnglish
    1·
    1 month ago

    War is expensive. Who would have thought? Does that prove anything about sanctions?

    Yes, because war spending is still spending, and acts as a stimulus, increasing GDP. The amount of increased spending accounts for a bigger share of GDP than their GDP growth figures account for, so without this extra spending their GDP growth would be negative, due to sanctions.

    And a 300B+ (rubles not USD)

    You’re right, I had my numbers mixed up. The NWF spending accounted only for $70B (5.3T Rubles)

    It’s the gutting of the liquidity of Russia’s banks that accounted for the majority of the stimulus and was even higher than the $300B that I remembered, at $446B (36.6T Rubles) by early 2025 https://navigatingrussia.substack.com/p/russias-hidden-war-debt-full-report

    This plus the NWF spending accounts for 20% of GDP, or roughly 5% per year over 4 years. Russia’s growth numbers were significantly lower than that at between -2.1% and + 4.3%. So on average, without the stimulus spending not a single year since the beginning of the war would have been positive economic growth.

    A human commenting online would just spell out delta.

    Admit you don’t know calculus without telling me you don’t know calculus. You write the letter, you don’t spell it out.

    And the non-monetary consequences of sanctions, that you also keep ignoring. From your own source:

    Russia’s military has difficulty procuring key components

    Which is why the Iskander production figures are fluctuating for example, and are much lower than they would be without sanctions. To come back to your favourite weapon, the ballistic missile.

    • Photonic@lemmy.worldEnglish
      1·
      1 month ago

      Yes

      That’s funny, because:

      Yet there is **limited evidence** that these measures have **inflicted substantial economic pain** on Russia, as the recent slowdown has largely reflected factors **unrelated to sanctions**.

      And I never claimed the sanctions were having no effect at all. So another bad faith argument by you. The thing we are discussing is:

      My claim, (in other words) that:

      Early in the war, the broad consensus was that the new sanctions would devastate the Russian economy.

      But that (and again, I quote, not my exact words, but VERY similar):

      there is limited evidence that these measures have inflicted substantial economic pain on Russia, as the recent slowdown has largely reflected factors unrelated to sanctions.

      For which I have provided ample evidence. Against your “nah uh!” without any evidence to back it up.

      So you don’t have to try to make a case against something I never claimed, which is that the sanctions are not having any effect at all on the Russian economy. They just weren’t draining the economy in 2022, like Von der Leyen (and many others) claimed.

      You write the letter, you don’t spell it out.

      Yeah in a work document, paper or math assignment, nobody does in a comment online with some other guy. Also the entire language was different from the rest of your comments. Stop embarrassing yourself.