The devastating long-term effects of sanctions against Russia

Vladimir Putin and his criminal war in Ukraine have returned the Russian economy back to the dark days of the early 1990s, with spiralling inflation, winding queues in front of banks and shops, stringent financial controls and a new wave of skilled Russian emigrants flowing out of the country. This crisis is only likely to get worse as Russia turns into a pariah state unpalatable for the world’s most technologically-advanced nations and enterprises.

As Vladimir Putin launched his brutal invasion of Ukraine on February 24th, a US-led coalition of like-minded governments launched their own economic barrage of sanctions against the Russian state, its largest companies and some of its most prominent individuals. The sanctions have focused on crippling Russia’s finances and its ability to pay for the war in Ukraine, as well as severing its military-industrial complex from strategic components. They have put a prohibitive lock on key Russian economic sectors like high-tech, energy and tradeables.