Russian Economy Imploding, Experts Claim

Five months into Russia's invasion of Ukraine, many Western officials and commentators still have a stunning lack of grasp of the economic elements of President Vladimir Putin's invasion and what it has meant for Russia's economic positioning both domestically and worldwide.

Photo Insert: The Kremlin's numbers have long been regarded as essentially untrustworthy.

According to Jeffrey Sonnenfeld, the Lester Crown professor in management practice and senior associate dean at the Yale School of Management, and Steven Tian, the director of research at the Yale Chief Executive Leadership Institute, in their July 22, 2022 analysis for Foreign Policy, the Kremlin has been putting a tight lid on genuine economic data, and a raft of laws enacted at the behest of Russian President Vladimir Putin actually make it difficult for economists to speak of a recession.

Far from being unsuccessful or disappointing, international sanctions and voluntary corporate retreats have had a devastating effect on Russia's economy. The weakening economy has been a potent, albeit unappreciated, complement to Putin's deteriorating political situation.

Given the scarcity of economic data, it is not surprising that these misconceptions continue.

Indeed, many of the too optimistic Russian economic assessments, predictions, and projections that have multiplied in recent months share a critical methodological flaw: these evaluations rely heavily, if not entirely, on periodic economic disclosures from the Russian government itself.

The Kremlin's numbers have long been regarded as essentially untrustworthy.

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