Russia’s economy has averted a devastating collapse so far despite unprecedented sanctions sparked by the war in Ukraine, allowing Vladimir Putin to rally his people against the West and in support of his invasion.Yet experts — and even top Russian officials — say trouble is right around the corner.
Reserves that have propped up the economy to this point are starting to run out, and Moscow’s mayor is warning of mass job losses.
The head of Russia’s central bank said this week that the impacts of existing and future sanctions are about to be felt in “the real economy” soon.“It’s largely an artificial propping up of the economy that’s taken place” up to this point, said Lisa Sundstrom, a political science professor at the University of British Columbia who studies Russia.“The question now is, how long can this continue?”After Western nations announced their first rounds of economic sanctions in the days after Russia invaded Ukraine on Feb.
24, the Russian ruble lost nearly half its value and stock markets were closed for the first month of the war to avoid a crash.Two months later, the ruble has largely recovered, becoming the best-performing currency globally in March.