Financial Times on Sanctions. “Russia is performing better than expected”

As the FT points out, it has not faced an economic boom of this magnitude since the fall of the Soviet Union. Half of its $640 billion foreign exchange reserves are frozen, several leading banks are cut off from the international payment system, Russian crude is selling at a discount of about $20 a barrel, and he calculates that a barrel is worth about $1,000. . Western firms, by one estimate, produced 40 percent. Russia’s GDP is a limited function.

“Russia’s economy is performing better than many expected,” writes the FT, “six months after Vladimir Putin’s aggressive Moscow prompted tough Western sanctions.” Sanctions have not yet weakened Moscow’s ability to continue fighting.

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