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For Russia, invading Ukraine was an economic boost

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Illusion

on February 20, 2025

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For Russia, invading Ukraine was an economic boost

extract from the article: Beyond Trump - What can peace in Ukraine look like and what was on Putin’s mind when he started the war? Even though it has suffered heavy human and material losses, Russia is prospering from the war in Ukraine. Those who bet on Russia’s bankruptcy in a war it cannot afford have misjudged the situation. In the first year of the war, economic sanctions were completely ineffective. The EU has blocked some imports for a wide range of products, but has remained dependent on Russian gas. Even if quantities have been reduced in this segment as well, Russia has imposed price increases and made even higher profits than before the war. Thus, 2022 was the most successful year for Russia’s international trade. Only after that did the situation deteriorate to almost the level of 2016, but the trade balance remains positive. At the same time, the war economy allowed the Russian leader to force the ruble rate and consumer prices, on the one hand, and stimulated, t...

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