The Economy of Russia
Sanctions After 2022 and Trade Redirection
After the 2022 invasion of Ukraine, sweeping sanctions cut Russia from parts of global finance, and it redirected exports toward Asia.
The world’s largest sanctions programme hit a major economy.
Measures
Central bank assets were frozen, some banks were cut from SWIFT and many companies left.
Oil price cap
Western countries limited the price at which Russian oil could be sold using their services.
New customers
Oil and other goods were sold at discounts to countries such as India and China.
Adaptation
Parallel imports, third-country trade and domestic substitution partly offset the effects.
A new buyer
India increased purchases of discounted Russian crude oil after 2022.
Assuming the economy collapsed or was untouched
Effects are mixed and evolving.
Key takeaways
- Assets were frozen.
- Oil price caps were introduced.
- Trade shifted to Asia.
- Adaptation reduced some effects.
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