The many economically oriented actions taken against the Putin regime in response to the war in Ukraine are having an impact. Per an internal forecast from Russia’s Finance Ministry reported on by Bloomberg, Russia is staring down an economic contraction roughly on the level of what the country experienced in the early 1990s. And before that, the closest forebear for the level of economic upheaval is apparently what unfolded in tandem with World War II.
Following Russia’s recent invasion of Ukraine, the Putin-led nation became the most-sanctioned country on earth. Some of the highest-profile economic moves targeting the country have included a U.S. ban on Russian energy imports, sharp restrictions on the Russian central bank’s access to its foreign currency reserves, and steps by European nations to move away from Russian energy, on which certain European populations have partly relied. According to Bloomberg, the Finance Ministry estimates indicate Russia’s gross domestic product “is likely to shrink as much as 12% this year, deeper than the 8% decline expected by the Economy Ministry,” although there’s been no official confirmation of these calculations from the Russian government.
⚡️UN: 4.8 million Ukrainians lost their jobs since the start of Russia's full-scale invasion on Feb. 24.
According to the UN International Labor Organization, the number would grow to 7 million if hostilities were to escalate.
— The Kyiv Independent (@KyivIndependent) May 11, 2022
“Preparation of official macroeconomic forecasts does not fall under the Finance Ministry’s authority,” Russia’s Finance Ministry asserted, disputing reporting about the reportedly forecasted decline. The ministry “expects that the measures taken by the government and the Bank of Russia will make it possible to ease to a large extent the negative consequences of sanctions and ensure stable economic development,” they added. Obviously, no source associated with the Russian government is in any way credible. The murderous Putin regime isn’t fundamentally connected with reality — and that trend extends to this issue. Other forecasts for the economic decline Russia is facing this year have varied, although they’ve been in a range roughly including the reported Finance Ministry numbers. The International Monetary Fund, for instance, apparently concluded Russia was on track to see its economy contract by 8.5 percent.
⚡️Czech Republic recognizes Russia's actions in Ukraine as genocide.
Yevhen Perebyinis, Ukraine’s ambassador to the Czech Republic, said that the Czech Republic Senate adopted a resolution that also supports supplying weapons to Ukraine and granting it the EU candidate status.
— The Kyiv Independent (@KyivIndependent) May 11, 2022
Bloomberg said based on a source’s revelations that the Finance Ministry’s forecast turning out to be on-point would mean that roughly a decade of Russia’s economic growth would be wiped away. Meanwhile, other impacts on the Russian economy have come from the numerous large companies that have announced draw-downs of their operations in the country. Going forward, as the war in Ukraine drags on with Russia unwilling to acknowledge the scope of its strategic losses, further economic penalties for the Putin regime seem set to emerge. In a recent statement, leaders in the G7 group of nations said they “commit to phase out our dependency on Russian energy, including by phasing out or banning the import of Russian oil,” “will continue to take action against Russian banks connected to the global economy and systemically critical to the Russian financial system,” and more. The leaders also reiterated their commitment to going after wealthy Russians tied to Putin’s regime. Some such individuals have seen their high-dollar assets seized by governing authorities around the world.
⚡️European Commission: Ukraine needs up to 600 billion euros for reconstruction due to Russia's war.
European Commission Executive Vice President Valdis Dombrovskis said the EU will “provide large and very meaningful support for these reconstruction needs.”
— The Kyiv Independent (@KyivIndependent) May 11, 2022
