<p>Some sanctions can be evaded and some others are just political symbolism but overall the sanctions do hurt Russian economy.</p>
<p>In January 2022 Russian economy grew at about 6% (see <a href="https://www.statista.com/statistics/1009056/gdp-growth-rate-russia/" rel="nofollow noreferrer">Statista</a>). After the war and sanctions the The Institute of International Finance predicts a 15% contraction for Russia (as Reported by <a href="https://www.reuters.com/world/europe/four-weeks-war-scar-russias-economy-2022-03-24/" rel="nofollow noreferrer">Reuters</a>).</p>
<p>This effectively reverses 15 years of Russian economic growth, meaning that in one year Russia in economic terms will get back to 2006 (see picture below). That’s quite a lot, it’s worse than the economic impact of recent pandemic on some countries.  This is based partially on forecasts which are not 100% accurate but I reckon that even in best case scenario Russia will experience at least 8-10% contraction. However, in worst case it could contract even by 20% perhaps even more.</p>
<p><a href="https://i.sstatic.net/JDCmH.jpg" rel="nofollow noreferrer"><img src="https://i.sstatic.net/JDCmH.jpg" alt="enter image description here" /></a></p>

CC BY-SA 4.0
2022-04-06T12:23:29.587Z
2022-04-06T12:38:16.123Z
2022-04-06T12:38:16.123Z
1muflon1
<p>Things like &quot;banning Russia from SWIFT&quot; sound devastating, but then we find out that actually it is a ban on some (not all) Russian banks. So, do the sanctions imposed by the West and the pro-western countries actually hurt Russian economy, or do the Russians find the ways to make them painless?</p>

<inflation><central-banking><sanctions><russia>
How effective are economic sanctions on Russia?
Archil Zhvania
# How effective are economic sanctions on Russia?

(Asked by: username_0 on 2022-04-06)

Things like "banning Russia from SWIFT" sound devastating, but then we find out that actually it is a ban on some (not all) Russian banks. So, do the sanctions imposed by the West and the pro-western countries actually hurt Russian economy, or do the Russians find the ways to make them painless?

**Tags:** inflation, central-banking, sanctions, russia


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## 1 answers

### Answer by username_1 on 2022-04-06. Score: 2

Some sanctions can be evaded and some others are just political symbolism but overall the sanctions do hurt Russian economy.

In January 2022 Russian economy grew at about 6% (see [Statista](https://www.statista.com/statistics/1009056/gdp-growth-rate-russia/)). After the war and sanctions the The Institute of International Finance predicts a 15% contraction for Russia (as Reported by [Reuters](https://www.reuters.com/world/europe/four-weeks-war-scar-russias-economy-2022-03-24/)).

This effectively reverses 15 years of Russian economic growth, meaning that in one year Russia in economic terms will get back to 2006 (see picture below). That’s quite a lot, it’s worse than the economic impact of recent pandemic on some countries. This is based partially on forecasts which are not 100% accurate but I reckon that even in best case scenario Russia will experience at least 8-10% contraction. However, in worst case it could contract even by 20% perhaps even more.

[![enter image description here](https://i.sstatic.net/JDCmH.jpg)](https://i.sstatic.net/JDCmH.jpg)


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