JRL NEWSWATCH: “Russian Economy Contracts Sharply as War and Sanctions Take Hold” – New York Times
“The country’s gross domestic product from April through June declined 4 percent from a year earlier, new government data shows.”
“The Russian economy contracted steeply in the second quarter as the country felt … economic consequences [from] … its war in Ukraine … believe[ed] to be the start of a yearslong downturn. … Western sanctions, which cut off Russia from about half of its $600 billion emergency stash of foreign currency and gold reserves, imposed steep restrictions on dealings with Russian banks and cut access to American technology, prompting hundreds of major Western corporations to pull out …. But even as … [Russia] default[ed] on … foreign debt, the Russian economy proved more resilient than … initially expected … [T]he fall in G.D.P. … was not as severe … in part because … [of added] energy revenue as global prices rose. Analysts … say the economic toll will grow heavier as Western nations … turn away from Russian oil and gas ….”