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 Sanctions knock up to $150 billion off Russia’s economy since 2014. INFOGRAPHICS

The economy of the world’s biggest energy exporter is more than 10 percent or $150 billion smaller compared with what might have been expected at the end of 2013.

Censor.NET reports citing Bloomberg.

Half a decade has passed since Vladimir Putin annexed Ukraine’s Crimean peninsula. For Russia, the costs continue to mount.

The accession treaty signed to bring the Black Sea territory into Moscow’s fold is still unrecognized by most countries and the U.S. and European Union led a broad effort to punish Russia with sanctions. Undeterred, Russia has kept integrating Crimea into its economy, investing billions in new power plants and building a giant bridge to the peninsula last year.

Most of the costs Russia has incurred have come from the U.S. and EU penalties, which have piled up every year since the annexation, with new ones added for alleged election meddling and other actions. But the country and its residents - already suffering from low prices for oil, Russia’s main export -- are also feeling the pain a drop in foreign investment and stagnating incomes. A recent survey suggests the public appeal of the annexation is starting to wear off.

Sanctions knock up to $150 billion off Russia’s economy since 2014 01

Sanctions knock up to $150 billion off Russia’s economy since 2014 02

The economic lull has meant less money is filtering through to paychecks of ordinary Russians. Average incomes have barely budged above 30,000 rubles a month ($459) since the Crimea takeover and slump in oil prices pushed the country into an almost two-year recession. One region where incomes have grown is Crimea as wages increase from a low base to catch up with those in Russia.

Sanctions knock up to $150 billion off Russia’s economy since 2014 03

After picking up a bit in 2017 when it looked like U.S. President Donald Trump might move to lift sanctions, foreign direct investment has dwindled and even turned negative in the second quarter of last year.

Sanctions knock up to $150 billion off Russia’s economy since 2014 04

Stagnant Incomes

As the economic pressure takes its toll on ordinary Russians, the positive effect the annexation had on public opinion five years ago has started to wear off. A poll published on Thursday by the Moscow-based Public Opinion Foundation (FOM) found that just 39 percent of Russians think the takeover did Russia more good than harm, down from 67 percent at the end of 2014.

Источник: https://censor.net.ua/en/n3117164
 
 
 
 
 
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