Russian Economy Faces Catastrophic Crippling, Yale University Study Says

Russian officials, particularly President Vladamir Putin, have said that the economy is holding up, despite strong sanctions from the U.S. and European countries. But some leading economists said that is not the case. 

According to a report from CNBC, sanctions imposed on Russia following its invasion of Ukraine in February 2022 will have a detrimental effect on the Russian economy, leading to “economic oblivion” according to several economists.

Ian Bremmer, the president of the Eurasia Group, told CNBC on Monday that inventories are depleted and issues are expected to persist in Russia. 

Yale University conducted a survey last month looking into the state of Russia’s economy. The report's authors said that it offered a more accurate depiction of the state of the economy than what the Kremlin told the media. 

The report showed the Russian economy is being catastrophically crippled, at least as long as the severe sanctions from countries such as the U.S. are still in place. 

“Looking ahead, there is no path out of economic oblivion for Russia as long as the allied countries remain unified in maintaining and increasing sanctions pressure against Russia,” said the report.

The Yale University report contradicts analysis by the International Monetary Fund (IMF), which concluded the Russian economy was handling the sanctions better than initially expected. The IMF upgraded Russia’s gross domestic product target last week to -6% for the year, it was previously -8.5%.

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