Russia's economy to crumble down under sanctions attack

Posted on February 28, 2022   |  

• In 2022, soaring oil prices will offer Russia 1.5 trillion roubles ($17.2 billion) from taxes on energy companies' profits but this has an outlay of deepening isolation from the world economy, markets, and investment.
• Russia will be treated as a hostile state cut off from global flows, investment, and other regular economic dealings that build living standards, incomes, productivity, and company profitability.
• Russian household incomes are below 2014 levels and in 2019, before the COVID-19 pandemic, annual economic output was valued at $1.66 trillion, far below the $2.2 trillion in 2013.
• Sanctions would force Russia to self-finance more activities, curtail investments in industry and the military, and could end Russia's access to the international payment system SWIFT and impose outright sanctions.
• Losing access to SWIFT will problematize export and import payments, and prevent paying bond coupons, which will start technical bankruptcy.