Russia's economy contracts sharply as war and sanctions take hold.

[chuluma]

Source: New York Times

The Russian economy contracted steeply in the second quarter as the economic consequences of its war in Ukraine took hold.

The economy shrank 4 percent from April through June compared with a year ago, the Russian statistics agency said on Friday. It is the first quarterly gross domestic product report to fully capture the change in the economy since the invasion of Ukraine in February, when Western sanctions shut Russia off from much of the global financial system, and many countries severed trading relationships with Moscow.

It was also a sharp reversal from the first quarter, when the economy rose 3.5 percent.

Even as imports to Russia dried up and financial transactions were blocked to the extent that the country was forced to default on its foreign debt, the Russian economy has proved more resilient than some economists initially expected. But analysts expect the economic toll to grow heavier as Western nations increasingly turn away from Russian oil and gas, critical sources of export revenue.

Read more: https://www.nytimes.com/2022/08/12/business/russia-economy-gdp.html

[paleotn]

1. Russian statistics agency? 4% contraction X 2 or 3 is probably closer to reality.

[IronLionZion]

2. Afghanistan bankrupted the Soviet Union

so maybe Ukraine will do the same to Russia.

[brush]

4. That is something to think about. Putin has blown it...

listening to Alexandr Dugin, the deconstructionist, philosopher who preaches tearing down government institutions and replacing them with fascism. In Europe and Asia a totalitarian Russian Empire to control the Eurasian continent from Dublin to Vladivostok to challenge America and "Atlanticism"

Of course it won't work as they can't beat Ukraine and their economy is tanking.

[LetMyPeopleVote]

3. Sanctions work