Despite the war in Ukraine and heavy sanctions imposed by the West, the Russian economy has seen remarkable resilience in recent years. Initially, economic measures adopted by the West resulted in a collapse of the ruble and a major recession in Russia.

However, a significant change has occurred recently, with the Russian economy being highlighted as the fastest growing in Europe, according to President Vladimir Putin, and with the International Monetary Fund (IMF) revising upwards its growth forecasts for the country.

According to IMF data, the Russian economy outperformed the entire G7 last year and should continue to lead in 2024.

This economic resilience is attributed in part to the remobilization of the Russian economy for the military effort, especially the construction of defensive fronts in eastern and southern Ukraine. However, questions about the sustainability of this economic model emerge, considering Russia’s growing dependence on revenues from oil, China and war spending.

While hydrocarbon revenue streams continue to flow despite Western embargoes, the Russian economy remains vulnerable to changes in the global energy market and increasing pressures imposed by the West.

Russian access to technology increases costs and limits the country’s revenue

The Western strategy to contain Russia involves a cautious approach, aiming to restrict Russian access to technology, increase costs and limit the country’s revenues, while avoiding a direct confrontation that could be harmful to both parties.

Although the use of frozen Russian financial assets is considered as a possible source of financing for the reconstruction of Ukraine, this action could have significant implications for the global financial system and international diplomatic relations.

The battle over the Russian economy will not only shape the future of this conflict, but will also have ramifications that extend beyond the borders of Russia and Ukraine, impacting the global economy as a whole.

Surce: europeanway