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https://www.investmentmonitor.ai/special-focus/ukraine-crisis/yale-study-russian-economy-hit-sanctions

Yale study shows Russian economy has been crippled by business retreats and sanctions

The Russian economy is reeling from the impact of international sanctions and corporate exodus, shows a new academic paper from Yale University.

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Imports into Russia suffer
Russia is facing a simultaneous crisis of imports, which made up (pre-invasion) 20% of the country’s GDP. Its economy is largely reliant on imports across industries and across the value chain with few exceptions.

“Despite some lingering leakiness, Russian imports have largely collapsed, and the country faces stark challenges securing crucial inputs, parts and technology from hesitant trade partners, leading to widespread supply shortages within its domestic economy,” says Yale’s paper.

A review of trade data from Russia’s top trade partners – since the Kremlin is no longer releasing its own import data – suggests that Russian imports fell by upwards of 50% in the initial months following the invasion.

“Despite Putin’s delusions of self-sufficiency and import substitution, Russian domestic production has come to a complete standstill with no capacity to replace lost businesses, products and talent; the hollowing out of Russia’s domestic innovation and production base has led to soaring prices and consumer angst,” writes the Yale team.

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