The Russian analysts’ report “paints a more dire picture than officials usually paint in their optimistic public statements.”
The Russian government has calculated that it will lose $6.6 billion due to the decision to completely stop gas supplies to European Union countries. Bloomberg reported this with reference to the Russian government report.
It noted that the document, submitted on August 30 to the Russian government by an expert group, “paints a more dire picture than officials usually do in their optimistic public statements.”
A complete shutdown of gas supplies to Europe (Russia’s main export market) could cost the Russian budget up to 400 billion rubles (or $6.6 billion) a year in lost tax revenue, according to the report.
At the same time, it is not possible to fully compensate for the loss of sales volumes of new export markets even in the medium term.
The authors of the report emphasize the significant negative damage from the sanctions imposed due to Russia’s military intervention in Ukraine. In particular, producers of metal products in Russia will lose about $5.7 billion a year due to the impact of Western sanctions.
Russia’s oil producing and refining industries will also take a hit after Western sanctions on Russian crude and oil products are implemented.
The sanctions associated with limiting technology exports did little damage to the Russian economy. Import-dependent sectors of the Russian economy, such as pharmaceuticals, engineering, aviation and other transportation, as well as the communications and IT sectors, will suffer the most from Western sanctions.
Even in the agricultural sector, where the Kremlin has announced its efforts to replace foreign supplies, reliance on import-dependent key inputs could force Russians to reduce food consumption.
Also, for the first time, the report officially recognizes the possibility of a large “brain drain” from the Russian Federation – according to its authors, by the end of 2025, Russia may leave up to 200 thousand IT specialist.
Remember, on the eve of Russia promised Europe’s gas problems until the lifting of sanctions.
Limit oil and gas. New sanctions against Russia
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.