The five researchers pif written the report provides a comprehensive economic analysis of how Western sanctions and the withdrawal of foreign companies have affected Russia.
The researchers’ conclusion, five months after Russia’s invasion of Ukraine, is that it has “catastrophically crippled the Russian economy”.
Martin Kragh is deputy director of the Center for Eastern European Studies (SCEEUS) and senior researcher at the Foreign Policy Institute. He considers the report to be credible, even if it has not yet been reviewed according to academic principles.
– It documents what many may have already suspected, that the Russian economy has major problems, says Martin Kragh.
Difficult to get information
About 1,000 foreign companies have left the country, which is believed to be roughly 40 percent of Russia’s GDP. However, it is difficult to say what concrete effects it has had, says Martin Kragh.
– There are extremely few concrete examples of what is happening at that level in Russia today. To a large extent, it has to do with the fact that free journalism in Russia has been so heavily restricted that we no longer get that kind of information.
Russian war capability
How effective have the sanctions against Russia been? Russia has not stopped its warfare against Ukraine, but the sanctions can still be said to have had an effect, says Martin Kragh.
– The Russian economy has suffered and this means that they can manufacture fewer rockets, grenades and tanks. It is an indirect limitation of the Russian war capability.
Can it be understood that the economy is a key for President Putin to be able to maintain his power?
– Yes. He has had some kind of vague promise to offer financial stability for over 20 years. Now, for almost a decade or more, the Russian economy has stagnated, says Martin Kragh.