The Devastating Impact of Western Sanctions on the Russian Economy and Military

Since the commencement of the Russian invasion of Ukraine, the Western nations have imposed a series of economic sanctions on Russia with the aim of stifling its military and economic capabilities. This article explores the far-reaching consequences of these sanctions, both for Russia and the global economy.

The Economic Collapse of Russia

The Russian economy has been severely impacted by these sanctions. The international value of the Russian Ruble has plummeted, leaving it largely unviable as an international currency. This collapse has resulted in a significant drop in foreign export income, specifically from the rich energy and mineral resources that were once Russia's primary source of revenue. Consequently, these funds are no longer capable of supporting the Russian government's budget and are unlikely to regain their previous levels even if sanctions are lifted. The West has shifted towards alternative resources, rendering this loss permanent.

Strained Government Spending and Inflation

The Russian government's attempts to fund its military actions in Ukraine by increasing taxes and cutting back on essential services have proven insufficient. As a result, the Russian economy is facing a severe deficit and rising inflation, which has compounded the financial reserves depletion. The government has been forced to declare a war footing, drastically reducing essential government services, with dire consequences for the Russian people, including worsening poverty and reduced access to basic services like food, healthcare, and education.

Impact on Russian Military and Heavy Equipment

The military has been particularly hard hit. The loss of 80% of its expensive and modern military equipment, combined with the inability of Russian arms factories to rapidly replace these losses, has severely weakened the military’s capabilities. The lack of critical high technology components, which are unavailable due to Western sanctions, has further hampered the military's effectiveness. This degradation extends to numerous industries that rely on modern Western high technology, many of which have been crippled or lost capabilities due to the sanctions.

Bankruptcy of Major Russian Companies

Major companies like Gazprom have faced financial ruin, with many Russian industries having been crippled by the sanctions. This loss of technological and financial support from the West has resulted in the bankruptcy of numerous large and vital Russian companies. The Russian economy is now facing a multitude of challenges, including devastating financial losses, infrastructure failures, and a rapidly deteriorating quality of life for the Russian populace.

Why the Sanctions Were Imposed and Long-term Consequences

The sanctions were imposed by Western nations, particularly the United States, to curtail Russia's capacity to wage aggressive wars. The intention was to cripple Russia's military and economic might without causing its total collapse or the potential destabilization of Russia. However, the continuation of Russia's war of aggression on Ukraine until it ceases hostilities and makes amends for its actions remains a point of contention. The long-term impact of sanctions includes Russia's permanent exclusion from a significant portion of the global economy, along with the loss of access to sophisticated modern technology.

The question remains: What has Russia gained by persisting with an illegal and brutal invasion of Ukraine? What could have been achieved through peaceful coexistence and mutual prosperity under open borders and good relations? The answer is that the invasion has led to a near-unanimous condemnation by the international community, ending the era of open trade and collaboration with Russia. The relationship between the Western world and Russia is irreparably damaged, and a return to the pre-2014 levels of trade and trust seems unlikely.

Conclusion

The sanctions imposed by the West have severely impacted Russia's economy and military, significantly altering the country's economic landscape and military capabilities. Russia's inability to regain its lost position in the global economy and the loss of access to modern technology is likely to have long-lasting consequences. While the West is willing to progressively increase sanctions if Russia does not comply with the international community's wishes, the reality is that the relationship between Russia and the West will remain strained in the foreseeable future.