Russian economy Facts: 1) The EIU* is expecting the Russian | The Econgram

Russian economy

Facts:
1) The EIU* is expecting the Russian GDP to decrease by 6.2% this year and by 4.1% in 2023.
2) Nevertheless, Rosstat* is projecting a little contraction of 2.9% in 2022 and of 0.9% in 2023 up until the growth in 2024.
3) The energy sector represents around ⅓ of the Russian GDP.

Analysis:
1) After Moscow cut off gas flows to Europe, The Kremlin is forced to sell oil to Asian countries at huge discounts.
2) In the long term, Europe will decrease its dependence on Russian energy, which is the reason why Moscow is restricting the gas supply now when its position is still strong.
3) It is hard to predict the exact condition of the Russian economy in the future because the impact of sanctions* is yet to come. Besides, other sanctions are probable to be implemented.
4) For instance, sanctions will make it extremely hard for Russia to explore and develop new energy fields, particularly in Arctic regions. This is due to the plan of the USA to stop the export of required technology.

Inspired by CNBC