Russia: Economy was about to fall apart after sanctions in 2022

Russia acknowledged that, following the imposition of sanctions by the West in 2022, its economy was in danger of collapsing.

The sanctions, which included removing some of Russia’s banks from the SWIFT network, capping the price of Russian oil at $60, and cutting off the country’s access to approximately $300 billion in foreign exchange reserves, were a major factor in the sanctions that followed Russia’s invasion of Ukraine.

However, Russia has successfully recovered and is now entering a growth stage, with the Kremlin predicting that Russia could grow as much as 3% this year, above the 2.2% projected by the International Monetary Fund.

Putin has vowed to retaliate by slashing oil production, which threatened to send prices higher. Despite claims of strong economic growth, experts and observers have expressed doubt over the country’s future, with signs of financial trouble as it plans for a record-high military budget in 2024.

Critical sectors, such as Russia’s auto industry, have nearly collapsed over the past year, and inflation continues to rage. Some experts suggest that Russia could be headed for a grim future as its economy continues to deteriorate from its war against Ukraine.