‘There is no way out of economic oblivion for Putin’: Russia LOSES financial war with the West

Russia is losing its economic war with the West and its economy is in catastrophic and irreversible decline even as it cuts off gas to Europe, a new report says.

As panic spreads across Europe over the prospect of gas rationing and rising energy prices, it is in fact Russia that is in trouble, with cases pulling out and sanctions crippling their economy catastrophically.

And while Putin is causing panic among European governments by cutting gas supplies, the strategy is unsustainable for the dictator as he burns up his reserves and runs out of budget.

This is the verdict of a report written by Yale that has looked beyond the Kremlin’s handpicked economic numbers to access private Russian language and other unconventional data sources.

The report looked at high-frequency consumer data, cross-channel controls, releases from Russia’s international trading partners and mining complex shipping data to create an economic analysis that measures the state of Putin’s economy and what the future holds for it.

Vladimir Putin is losing economic war with the West and his economy is in catastrophic and irreversible decline even as it cuts off gas supplies to Europe, new report claims

Putin's strategy to choke Europe's gas supply is likely to backfire, as Russia relies much more on Europe to buy its gas than Europe does on Russian gas to heat its homes.  Liquefied natural gas imports from the US already surpassed Russian pipeline gas in June

Putin’s strategy to choke Europe’s gas supply is likely to backfire, as Russia relies much more on Europe to buy its gas than Europe does on Russian gas to heat its homes. Liquefied natural gas imports from the US already surpassed Russian pipeline gas in June

To keep Russia's economy afloat, Putin has plunged into its foreign exchange reserves - worth nearly 40 percent of Russia's total GDP, which have already fallen by more than 10 percent.  $300 billion of those reserves kept in western banks were frozen at the start of the war

To keep Russia’s economy afloat, Putin has plunged into its foreign exchange reserves – worth nearly 40 percent of Russia’s total GDP, which have already fallen by more than 10 percent. $300 billion of those reserves kept in western banks were frozen at the start of the war

And the picture it paints is grim for the Russian dictator. Since his invasion of Ukraine on February 24, he has been embroiled in an economic war with the West over sanctions, trade and energy supply.

While some analysts have criticized the resilience of the Russian economy in the face of Western efforts to cripple it, experts at the Yale School of Management have concluded that “there is no way out of economic oblivion for Russia.”

“Defeatist headlines claiming that the Russian economy has recovered are simply not factual,” the report says.

“The facts are that regardless of the yardstick and at every level, the Russian economy is faltering, and now is not the time to put the brakes on.”

Every single sector of the Russian economy is being affected – both imports and exports have fallen and the allies are not helping, and in some cases are actively taking advantage.

And Putin has burned through his once hefty rainy day funds he had set aside – precisely in the event of a confrontation with the West – in an unsustainable attempt to close the cracks.

The government budget is in deficit for the first time in years, despite skyrocketing energy prices that Putin manipulated by limiting gas supplies to Europe.

While this strategy will undoubtedly hurt European governments and the rest of the world in the form of inflation, it has a price that Putin cannot continue to pay indefinitely.

Russia’s position as the leading exporter of commodities has irrevocably deteriorated, the report says, as it now deals with countries like China and India from a ‘weak position’ with the loss of its key markets.

Imports of critical inputs and technology needed for domestic production have largely dried up, meaning cars manufactured in Russia are shipped without ABS or airbags, and all types of consumer goods are not available to the average Russian.

Imports of critical inputs and technology needed for domestic production have largely dried up, meaning cars manufactured in Russia are shipped without ABS or airbags, and all types of consumer goods are not available to the average Russian.

Russia's inflation rate skyrocketed after the invasion and although it is on the decline, it still stands at 16 percent, while 9 percent in the US is considered a disaster

Russia’s inflation rate skyrocketed after the invasion and although it is on the decline, it still stands at 16 percent, while 9 percent in the US is considered a disaster

Every single sector of the Russian economy is being affected - both imports and exports have fallen and its allies like India and China are actively using it to get cheap oil and gas from Putin

Every single sector of the Russian economy is being affected – both imports and exports have fallen and its allies like India and China are actively using it to get cheap oil and gas from Putin

Russia’s gas exports to China were only ten percent of the total, and China has extracted an increasing discount of $35 even as Russia tries to make up for the loss of the European market.

“Despite Putin’s delusions of self-sufficiency and import substitution, Russia’s domestic production has come to a complete standstill without the capacity to replace lost companies, products and talent.

“The erosion of Russia’s domestic innovation and manufacturing base has led to rising prices and consumer fears.”

Imports of critical inputs and technology needed for domestic production have largely dried up, meaning cars produced in Russia come without ABS or airbags.

The withdrawal of Western companies, which accounted for about 40 percent of Russia’s GDP, has reversed nearly three decades of foreign investment, which, combined with a mass exodus of young and educated Russians, has greatly deteriorated Russia’s economic base. .

Moreover, Russia is unable to borrow the capital it needs to restart its crippled economy, as domestic financial markets – the worst performing in the world – have priced in “ongoing, ongoing weakness.”

The picture painted in every sector of the Russian economy is grim, and the only glimmer of light at the end of the tunnel for Putin is the effectiveness of his propaganda channels that could potentially fuel the will of European leaders to enforce sanctions. undermine.

But as long as the allied countries remain united in maintaining and increasing the pressure on sanctions against Russia, the facts are that, at any rate and at every level, the Russian economy is faltering, and now is not the time to to step on the brake. ‘

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