Russian economy proves resilient in the face of sanctions

In a recent report, The Economist has reported that Russian economy is back on its feet and is defying predictions of collapse despite wide-scale sanctions by the US and West.

Helped along by capital controls and high-interest rates, the rouble is now as valuable as it was before the commencement of Russia-Ukraine war. Russia appears to be keeping up with payments of its foreign-currency bonds.

The real economy has proved surprisingly resilient. Russian consumer prices have risen by more than 10% since the beginning of the year, but real time measures of Russian economic activity are largely holding up.