Russia dodges economic collapse but the decline has started
Analysis by Clare Sebastian, CNN
London (CNN Business)Six months after invading Ukraine, Russia is bogged down in a war of attrition it didn’t anticipate but it is having success on another front — its oil-dependent economy is in a deep recession but proving far more resilient than expected.
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The readiness of China and India to snap up cheap Russian oil has helped, but Nechaev and other analysts say Russia’s economy has started to decline and is likely facing a prolonged period of stagnation as a consequence of Western sanctions.
On the surface, not much has changed, bar a few empty storefronts that once housed Western brands that have fled the country in their hundreds. McDonalds (MCD) is now called “Vkusno i tochka”, or “Tasty, and that’s it” and Starbucks (SBUX) cafes are now gradually reopening under the barely disguised brand Stars Coffee.
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The exodus of Western businesses, and wave after wave of punishing Western sanctions targeting Russia’s vital energy exports and its financial system, are having an impact, but not in the way many had expected.
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Interest rates are now lower than before the war, and the central bank says inflation, which peaked at almost 18% in April, is slowing and will be between 12% and 15% for the full year.
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https://www.cnn.com/2022/08/28/business/russia-economy-ukrai…