Timo Kirez
08 July 2024•Update: 08 July 2024
GENEVA
Sanctions on Russia have had little effect on the country's war on Ukraine, according to a new study released on Monday.
However, the study by the Vienna Institute for International Economic Studies, with German economic institutions from Munich and Kiel also taking part, sees possible long-term effects.
"The country's economy is currently growing strongly in view of the arms boom, but the sanctions will act like a creeping poison in the long term," wrote Vasily Astrov, a Russia expert, on the institute's website.
According to the study, the development of Russia's gross domestic product was characterized more by seasonal fluctuations than by the consequences of the war against Ukraine, which began in February 2022.
However, according to the research, inflation skyrocketed with the start of the war, from 8.3% in January 2022 to 17.8% that April.
According to the data, inflation in Russia did fall again in the meantime, but by this March it had climbed back to 7.7%.
The authors of the study also said that Russia's spending and sales have tended to be slightly higher since the start of the war than in the months before. The study is based on data from the Russian Finance Ministry.
The study said that when Russia started the war, the EU was the largest supplier of goods to Russia with $6.23 billion.
According to the study, Russia in turn exported raw materials worth over $13 billion to the EU.
The study also found that by last November, China had become Russia's most important trading partner for imports with $8.2 billion. Exports to China climbed to over $9 billion.
