For Whom The Bell Tolls, Really The Impact Of The Sanctions Against Russia

For Whom The Bell Tolls, Really The Impact Of The Sanctions Against Russia by Dr. Dan Steinbock, Difference Group

The sanctions against Russia are working; but not for Russia, Ukraine, the EU, or even the US.

In the 2^nd quarter, Russia’s GDP contracted 4.6 percent from a year earlier, following a 2.2 percent contraction in the 1^st quarter. A severe contraction was expected after the selloff in oil, currency crisis and the consequent plunge of consumer demand. But the plunge was worse than anticipated and most since 2009.

As Moscow has struggled to speed up the diversification of its industrial structure and to defuse the repercussions of the plunging energy prices, it has also sought to shift its economic relationships from the...