Experts Expect Russia's Economy to Halve Due to Putin's War

• 21.03.2022, 10:06

New Western sanctions could affect the energy sector.

In the USA, deputy director of the National Economic Council Daleep Singh told CBS that he expected the Russian economy to halve compared to what it was before Russia's invasion of Ukraine, Kommersant reports. Singh added: "We are not proud of the suffering of the Russian people."

Allianz experts have previously published a forecast that Russia's GDP will fall by 5.7 percent in 2022, according to Standard Chartered. Inflation is expected at 18.2%.

We shall remind you that the European Union, the USA, the UK and other countries imposed sanctions against Russia in response to the military special operation in Ukraine, which began in the early hours of 24 February on the orders of Vladimir Putin. The sanctions affected the Central Bank, leading Russian banks, state corporations, factories, the Defence Ministry's directorate, officials and businessmen.

Kommersant quoted Singh, "We can expand our sanctions. Take measures, impose sanctions that we have already imposed, apply them to more targets. ...>

The White House spokesman says the restrictions can affect strategically important areas of the Russian economy, such as oil and gas. "I don't want to specify them, but I think Putin knows what they are about," he added.