Bloomberg highlights how Russia shrugged off restrictions
Date
11/20/2023 7:37:18 AM
(MENAFN) Bloomberg's recent analysis highlights how key sectors of the Russian economy have not only adapted to Western sanctions but have also demonstrated a level of resilience that surpasses initial expectations. Contrary to the anticipated impact of sanctions aimed at weakening the Russian economy, industries ranging from manufacturing and airlines to banking have found innovative ways to adjust, driven by robust consumer demand and solid government support.
Among the sectors showcased as exemplary in navigating sanctions, the banking industry stands out as one of the most striking examples. Western penalties, including the exclusion of most Russian banks from the international financial messaging system SWIFT, were expected to significantly hinder their operations. Furthermore, certain banks faced blocking sanctions, preventing collaboration with international financial institutions. However, major players such as Sber, Russia's largest state-owned lender, along with other key banks, are set to achieve record profits this year.
Sber's CEO, Herman Gref, who himself is under sanctions from the United States, European Union, and the United Kingdom, expressed optimism, stating, "Most likely, this year will indeed be the most successful in history for us." The banking sector's total profit for the first nine months of the year is projected to exceed 3 trillion rubles (USD33 billion) in 2023, three times higher than initially anticipated by the central bank.
In addition to the banking sector's resilience, Moscow's revenues from oil and gas have surged to their highest level in 18 months, reaching USD17.7 billion last month. This uptick is attributed to Russia rerouting a significant portion of its trade flows eastwards, demonstrating the country's adaptability in the face of geopolitical challenges.
The report sheds light on Russia's ability to navigate and overcome the hurdles posed by Western sanctions, showcasing a multifaceted economic strategy that encompasses various sectors. As Russia continues to weather the impact of sanctions, the analysis prompts a reevaluation of the effectiveness and implications of economic restrictions imposed by the West.
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