The German media praises the strength of the Russian economy
The German media report pointed to some surprising facts about the Russian economy, which hasn’t collapsed under the influence of restrictions imposed by the West.
In an article published by Focus magazine, the analyst Gabor Steingart pointed to 5 reasons why the Russian economy was steadfast in the face of Western sanctions imposed on the background of its private military operation and was not affected by it.
According to the expert, Russia is now witnessing a kind of economic miracle, as Western supply and Russian demand find each other even under the most severe sanctions.
The first of these reasons, according to the expert, is the Russian financial system, which didn’t collapse even after the Swift service was cut off from Russia, in addition to the weakness of the US dollar against the Russian ruble.
As for the second reason, it’s the economy itself.
According to the forecasts of the International Monetary Fund (IMF), the Russian economy, like the Western economy, experienced stagnation in the past year, but it will grow again in 2023, and it is likely that in 2024, according to the Fund, it can exceed growth.
Russia’s economy significantly affected Germany’s economic growth.
The expert described the third reason as compensation for Chinese companies and products for Western companies that left the Russian market, as one of the reasons for the stability of the economy, as Chinese exports to Russia recorded a record level in December, which helped offset the sharp decline in trade with Europe.
The failure of some European companies to exit the Russian market as the fourth reason, as these companies don’t share the political views of their countries to exit the Russian market.
The fifth reason, which is related to Russia’s continued export of oil and gas, as the world is still interested in obtaining its raw materials, noting that as soon as the West stopped buying these materials, new buyers appeared.
And despite the sanctions, Europe is still unable to do without Russian gas, and countries such as France, Belgium, the Netherlands and Spain continue to receive Russian LNG, according to the Future Gas group.
Trade bans are only on paper, and sanctions are designed to persuade the local European public opinion not Putin.