Why the Russian economy did not collapse due to sanctions: CNN named a number of reasons

American CNN cited a number of reasons why Russia’s economy has not collapsed because of the sanctions.

It helped that the Kremlin had eight years to prepare after the West imposed sanctions in 2014.

Output Mastercard and Visa had almost no effect on internal payments, because the Central Bank of Russia had its own alternative payment system “World”, created in 2017.

Also, in 2014, many Western brands in Russia under pressure from the government localized some or all of their supply chain.

“So when these companies went, Russian buyers was relatively easy to purchase them and continue to control them simply by changing the wrapper and packaging. Same people, same products, same supply,” stated the article with reference to the examples of McDonald’s and Starbucks.

Well, the main reason is the increase in energy prices. Russia’s revenues from the sale of oil and gas in Europe has doubled in the period from March through July compared to the average for recent years. And this despite the decline in supplies of Russian gas to Europe over the last 12 months was reduced by approximately 75%.

While Asian oil exports from Russia amounted to 56% in July, compared to 37% a year ago.

However, the us TV station calls on the West to amuse themselves with the hope that things can change in December, when it will enter the European embargo on Russian oil. According to experts, Russia has formed two million barrels of “extra” of oil per day. And, although some of this oil is likely to go to Asia, there is no doubt that the demand will be high enough to absorb it all.

But it is worth noting that the price of gas began to grow rapidly especially on the background of European sanctions, after which Russia is beginning to limit shipments to the European Union, and especially unfriendly countries.

BestaAdept