Professor Maxim Bratersky from the Higher School of Economics in Moscow, said: “Due to different social programmes, the salaries of participants of the military operation (in Ukraine), the disposable income of Russians increased by more than 5 per cent. This increase has been presented to the market as demand, which helps the Russian economy.”
DO SANCTIONS STILL WORK?
Last week, the US imposed a fresh slate of sanctions on more than 500 people and entities linked to the war, as well as the death of opposition leader Alexei Navalny.
There have been concerns that the host of financial tools used by Washington and its allies to isolate Russia is not working.
But observers said sanctions take time and their effects will intensify in the longer run, hitting Russia’s key markets and significantly degrading its industrial and technological capacity. They added that sanctions have hampered Moscow’s war capabilities in Ukraine.
“This is a marathon not a sprint. (We can’t expect sanctions to defeat) Russia in the next two or three months on the economic front,” said Prof Lucas.
“(Sanctions) have affected Russia’s aircraft industry, and thus the ability to replace lost war planes. They have affected Russia’s manufacturing industry and thus the ability to put even more armour or equipment onto the front lines.
“They have disrupted the Russian war machine, even if the Russians maintain a serious advantage (on the battlefield).”
Source: CNA
