Did Sanctions On Putin's Russia Work? This Is How Its Economy Fared In 2022

Russia’s economy reportedly narrowed just 2.1% last year against expectations of a major recession as rising commodity exports helped offset the impact of U.S. and European sanctions in the backdrop of the Ukraine invasion.

The preliminary result was better than the 3% fall expected by officials as recently as the early fall, reported Bloomberg. The figure came in far short of the 10% decline some forecasters projected when the country started getting hit by sanctions.

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Locko Bank economist Dmitry Polevoy said he believes it's a good result. “But this is all in the past. What matters is the future and here there are still a few reasons for recovery. In the base case for 2023, we still see a small contraction of 1%-2%,” he said, according to the report.

The hardest-hit sectors were wholesale and retail trade, as well as manufacturing and transport, the report said citing the Federal Statistics Service. Mining, agriculture, construction and government spending grew last year, it added.

According to Bloomberg Economics, the economy will lose $190 billion in the gross domestic product by 2026 relative to its pre-war trajectory.

Oil: Russian exports of discounted crude and fuel oil to China have risen to record levels as the re-opening of the world’s biggest energy importer gained momentum after the removal of its Covid Zero policies, said a Bloomberg report.

Overall flows in January were at the highest at any point since the invasion of Ukraine a year ago and surpassed a record set in April 2020, the report said citing data intelligence firm Kpler.

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