Sanctions over Ukraine are starting to ‘shrink’ Russia’s economy. Here’s how

Ukraine, Western sanctions are starting to have an impact on Russia’s economy, experts say.“Their economy is really starting to shrink,” Mark Manger, associate professor at the University of Toronto’s Munk School of Global Affairs and Public Policy, told Global News.Russia’s gross domestic product is estimated to shrink by 15 per cent by the end of the year, according to the International Institute of Finance.If levels drop to this level, Russia will see its greatest recession since 1992, according to data from The World Bank.

This would also be twice as severe as the 2009 recession.Here’s a look at how Western sanctions are affecting Russia’s economy.

Russians bury relatives killed in Ukraine as Kremlin admits major losses In March, Russia’s manufacturing sector saw the largest decline since the beginning of the COVID-19 outbreak in 2020, according to S&P Global.“Driving the downturn were the notably sharper decreases in production and new orders amid muted foreign and domestic client demands,” the company said in a report on April 1.Employment in the manufacturing sector is “falling at the joint-fastest pace in almost two years” due to firms cutting jobs, according to the report.Thousands of autoworkers in the small Russian city of Kaluga have been furloughed as Western sanctions hit its flagship foreign carmakers.Sanctions have exacerbated lingering component shortages and halted production at two flagship car plants: Germany’s Volkswagen and Sweden’s Volvo.

Both makers have suspended operations due to the war, affecting 4,200 and 600 workers respectively.Ford also announced it would suspend its Russian joint venture at the beginning of March.According to Munk’s Manger, Russia has also begun “cannibalizing” its.