How sanctions actually affect Russia: Doctor of Economic Sciences assessed their prospects

When the West imposed sanctions against Russia in 2022, it said it hoped for quick influence restrictions. They were seen as a way to end the war of the aggressor country against Ukraine.

About this 24 Channelsaid Doctor of Economic Sciences Igor Lipsits, noting that this is a very dubious topic. He added that restrictions don’t work quickly.

The aggressor country begins to plunge into technical backwardness. It is less and less capable of producing modern products. So the Russians will work with less efficient equipment. At the same time, expenses will increase, and financial results activities will decrease.

The country will become poorer and degrade, because it is cut off from the global technical process. It will be increasingly difficult for her to repair enterprises that were built in Soviet times or repaired and updated over the past 30 years, says Lipsitz.

All because of the fact that there imported equipment. Therefore, the question arises of how to repair it when sanctions are everywhere. Therefore, Russia will lose labor productivity and economic profit.

“We see this in the example of Iran. So obvious the model of the future of Russia is Iran, which is “alive”, has not collapsed, and has not even lost power. But the standard of living in Iran is several times lower than in most regions,” emphasized the Doctor of Economic Sciences.

Especially if we talk about Western and Eastern Europe, and even the European part of Russia. Also, Lipsitz is convinced that the Russians will have currency instability and high inflation.

“That is, so heavy, a miserable, hopeless life. This is what sanctions ensure. And the collapse of the regime, the cessation of hostilities is probably unrealistic,” says the Doctor of Economic Sciences.

Sanctions against Russia: news

• The EU began preparing the 14th package of restrictions against the aggressor country. There may be measures that will prevent Russia from circumventing existing sanctions.
• Ukraine is discussing with its partners the possibility of introducing an additional tax on Russian goods sold on international markets. Prime Minister of Ukraine Denis Shmygal said that they are working to direct this tax to the Ukrainian state.
• The US Congress held hearings on sanctions against Rosatom. The Russian State Concern is participating in armed aggression against Ukraine. Congressmen got acquainted with the evidence about the activities of Rosatom.