Are Russian sanctions working? | Money Works
[Music] when Alexi naly the Russian opposition leader died in an Arctic penal colony in February Western countries were quick to add to the ever growing list of sanctions against Russia by the time of nal’s funeral the number of sanctions imposed by the United States alone totaled more than 500 most of those are linked to Russia’s aggression in Ukraine they intensified with Russia’s fullscale invasion in 2022 but some of the sanctions date back to 2014 when Moscow overran Crimea but are any of them actually [Music] working yes superiots belonging to Russian oligarchs have been impounded bank accounts have been frozen Western retail chains have shut their stores in Moscow and Beyond from the get-go the aim was to put the squeeze on Russia’s economy to Prov spoke Russian people to think twice about Vladimir Putin’s war on Ukraine and any opposition to his presidency but if the sanctions against Russia were supposed to shrink the economy to make fighting a war all that much harder on Russia figures suggest that Putin’s War economy is actually growing and this view of trucks queuing to get into Russia is said to be deliveries of banned goods and technology that are still getting in despite the international Crackdown Brands like apple are still available on Russian answers to Amazon sites like Yandex Market at very competitive prices more than 1,500 companies including many of the world’s most recognizable Brands announced long ago that they would end or dial back their operations in Russia in protest over moscow’s military aggression against Ukraine but an investigation by Al jazer English online and our digital investigations team has found that many of these companies products are still easily available in Russia do have Logistics channels already established this is our journalist posing as a customer in Russia the journalist is talking to BMG International an Electronics distributor which operates out of Dubai we can send the goods on cic Moscow we can ensure the goods we can send it to the airports sending American brand phones to Russia doesn’t present a problem to them but they prefer payment through a third party okay we can receive money from Russia but currently we don’t prefer to receive money directly from from Russia that’s why we can introduce you to our partners here you can do the transfer to their company in Moscow and they will transfer them to us here a lot of the current trade is online high-end luxury firms shut up shop in Russia back in 2022 but Russian businesses have established a network of alternative Supply chains to import restricted Goods through third countries our journalist even found a store in Dubai selling luxury watches which sees no problem trading with a Russian client in a WhatsApp message our journalist wrote she is a potential client from Russia the reply could not be clearer it says we are more than happy to deal with you then there are the cars after the Russian invasion of Ukraine manufacturers like BMW Audi Nissen Kia and Ford all pulled out new car sales fell like a rock by 59% then they started picking up again with Chinese manufacturers filling the Gap they now control 50% of the Russian Market it was just 10% before the war but if you check out Russian websites you can still buy new cars that officially just shouldn’t be available so how are all these phones food toys cars and perfumes getting in well Russia’s relaxed its import laws Now Products enter without the permission of the trademark owner that means shipping from countries that haven’t signed up to the sanctions countries like China and the United Arab Emirates other products come Overland through countries that include Georgia bellarus and Kazakhstan so while Germany’s exports to Russia almost haved in the first quarter of 2023 for example its exports to Russia’s Neighbors actually shot up there’s also evidence that suggests sanctions designed to stop Russian missile and drone attacks like this are failing too us and European technology vital for these weapons and other military hardware is being smuggled to Russia through countries that aren’t signed up to the sanctions regime Russia is now the most penalized country in the world with more than 16,000 sanctions on Russian individuals and entities currently in place when they were imposed Russia’s economy tanked now though it’s growing as Russia pumps cash into military production the international monetary fund has upgraded its growth forecast for Russia this year to 2.6% yet Western Powers continue to insist their sanctions are making an impact Global sanctions the oil price cap the export controls that we’ve put in place have weakened Russia’s War Machine and these restrictions will get significantly tighter but there is an acceptance that Russia is finding ways to work around the many restrictions any country that is supplying dual use Goods to Russia we need to make sure we’re prepared to sanction companies in those countries at First Sight the sanctions battle looks like it’s turning in Russia’s favor but Western Powers still hold 300 billion of Russian reserves and the Hope in the US and Europe is that every Ruble Vladimir Putin spends on finding workarounds for sanctions means one Ruble less to send to the front in Ukraine economists argue that the Boost that’s come from converting Russia’s economy into a machine for war can’t last that any kind of short-term victory for Moscow could end up as an eventual Financial defeat the strategy in the Kremlin though appears to be to hold its nerve and hope that in November the US votes for a new president and at the same time brings an end to the West support for Ukraine [Music]
When Russia invaded Ukraine, several Western states imposed sanctions as punishment. Western brands also closed shop. The aim was to put the squeeze on Russia’s economy. But two years on, are the sanctions working?
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22 comments
Is this journalism? Really? It seems to be trying to pass off the idea that burning through currency reserves to build weapons is the EXACT same thing as having a healthy economy.
Quite poor/unnecessary journalism.
1) Sanctions cannot work while other countried freely trade with Russia.
2) What is more important is to check Russian exports to the West ? Are middlemen able to change the origin of goods
3) In any case the European Union/ NATO countries are even today, the largest buyers of Russian LPG with direct shipping of this from Russia by Russian ships to ports of NATO countries.
4) USA is buying Uranium from Russia – even now 😂
5) The only fools are the public in USA and Europe who do not even know about points 3 and 4. They are praying for the Ukrainians in the day and paying the Russians to bomb, Ukraine at night……
Al Jazeera is Middle Eastern version of CNN.
Russia being able to defy the U.S. and go their own way keeps the whole war secure.
News flash?! Russia has never been an enemy to most countries. Most countries love to trade with Russia.
Garbage
When the people are valued , respect and have the same rights as its leader, you are now on a journey to freedom, but freedom does not come easy.
Its wartime boom. The money is going nowhere. So this is bullshit. There low on workforce numbers bad
How did Russia overrun Crimea?
Al Jazeera are frauds too!
Looks like the sanctions are only working in Europe 😂
Stupid sanctions
Again, westerners haughtily underestimate Russian psyche and its ability to rally behind national support.
West has sanctioned Iran Russia and Other Countries for violation of Human Rights Women Rights and War but they failed to sanctioned Israel for occupying West Bank for 50 years and Gaza war this shows western hypocrisy and bais against Israel..
Where are the western sanctions on Israel… Hypocrites!!
Impact of sanctions on the Russian economy:
In May, Russia's GDP growth accelerated from 4.4% to 4.5% in annual terms, according to data from the Ministry of Economy. In January-May, the Russian economy grew by 5% compared to the same period last year.
According to the department, the main growth drivers are the manufacturing industry and construction. Thus, the production of computers, electronics and optics in January-May 2024 increased by almost 40% compared to the same period last year. There is also positive dynamics in the chemical and food industries.
Electricity production increased by 3% in May. Production for 12 months set a historical record.
Industrial production (about 30% of GDP) increased by 5.3% in May.
The Moscow Exchange index in June amounted to 3,140 points (+14% per annum). The index has been growing since April last year (15 months).
The real total return index increased compared to June last year (+10% per annum). It has also been growing since April 2023 (15 months).
Based on the results of the first four months, the growth of real wages in Russia amounted to 10.5% compared to the same period last year, according to Rosstat data.
The World Bank (WB) has recognized Russia as a high-income country. The financial institution published a document with this content on Monday, July 1.
Data for countries around the world whose economies grew at double-digit (almost double-digit) rates for more than 20 years in the 20th century are given below:
1. 13.8% – Russia – average annual growth for 22 years (1929–1955).
2. 11.5% – Taiwan – average annual growth for 27 years (1947-1973).
3. 10.4% – China – average annual growth for 25 years (1983-2007).
4. 10.2% – South Korea – average annual growth for 23 years (1966–1988).
5. 9.7% – Japan – average annual growth for 23 years (1948-1970).
6. 9.2% – Singapore – average annual growth for 24 years (1966-1989).
Thus, in the twentieth century, the world's largest national economic growth for more than 20 years was achieved in Russia in 1929–1955 (minus four war years). During this period, real wages grew 4 times, citizens’ deposits in savings banks grew 5 times, and the economy grew 14 times.
And:
– First place in the world in terms of the share of mechanical engineering in the total volume of industrial production.
– Complete technical and economic independence of the state has been ensured.
– First place in the world in terms of agricultural mechanization.
– First place in Europe and second in the world in terms of absolute industry size.
– First place in Europe and second in the world in terms of labor productivity in industry.
– The latest industries and advanced technologies: nuclear, space, rocketry, aircraft manufacturing, instrument making, radio engineering, electronics, electrical engineering and others. From the point of view of the saturation of economic sectors with new equipment and technologies, the Russian economy and industry had the youngest production and technical apparatus in the world.
And sanctions did not prevent such economic growth in Russia.
You can't defeat Russia. You simply can't. They have theirown mindset and mentality. Not sure what West was thinking when they started stirring pot LOL
I’m not an economic expert, but I have to think that putting all their money into this war is going to eventually cause some financial problems for them
Some1 should tell the prime minister elect of Britain not to try to fight Putin otherwise he won't finish his term like others🙂
Only thing right about this videos is the last 40 seconds of it
Western countrys olso clame ending mass migration, creating jobs ane whealth and the world, building houses and lots off b.s…
Just not now because there is a ….hmmm crisis
So for the next decates it will be just more taxes more inflation and well in one thing there Wright the west will be verry green just not liveble for its natives they will be replaced
Obviously not. Russia is not Cuba.😂
Let me save you 7 minutes, answer is “NO”