Foreign PolicyForeign Policy

Why Russia’s Economy Is Holding On

By Michael Hirsh

22 Apr 2022 · 11 min read

Despite predictions of doom for the heavily sanctioned Russian economy, nearly two months into Russian President Vladimir Putin’s invasion of Ukraine, his country’s oil exports to Europe and nations such as India and Turkey have actually risen, and its financial sector is so far avoiding a serious liquidity crisis.

Sanctions may work in the long run, experts say, but for now many of the same countries that are sanctioning Russia are still seriously undercutting their efforts by buying energy from it—in some cases in even larger amounts during April than in March.

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