Russia's GDP saw an increase of 2.5% despite the West's imposed sanctions

Posted on August 1, 2022

• The economic sanctions were meant to separate Russia from the global financial system and subdue available funds to Moscow to finance the war but the country's GDP estimate for 2022 saw an increase of 2.5%, although its economy is still expected to decrease by 6%.
• The US and China's economies are slowing in Q2 2022 while Russia’s economy shrank less than expected because in March, crude oil soared to $129 and finally, settled down at $105, and non-energy exports are better than predicted.
• Europe is facing the effect of its reliance on Russia for energy which could worsen even more if Moscow suspended gas exports, and the EU decide to ban Russian oil delivered by sea starting next year.