Ksenia Bondarenko and Global Times (China): Has Western sanctions worked? Discover the real life in Moscow after two years under sanctions
The interview covers macroeconomics, business activity, life of Russian people and relations with China.
Inventories, budget support and the measures introduced by the Bank of Russia supported Russian economy in 2022, when GDP declined by 1.2% (which yet was far lower than initially expected). Moreover, in 2023 Russian economy showed the vast growth. The process is followed by many challenges, which include issues with cross-border payments, the fact that many international companies are afraid to come under secondary sanctions because they work with 'Russian affiliated entities' and others.
Regardless these challenges, business activity in Russia continues accelerating. Some Western companies left Russia, so many Russian and Chinese producers have already covered these niches. The other Western companies continued to operate in Russia (under the previous name and/or changing to something similar). In daily purchanses, customers are shifting to Russian brands - from food to clothing and houseware. Chinese cars float the market, and simultaneously Russian car producers are working on developing internal production (including EV). Russian business is doing its best to succeed - because people do want to buy.
The economy has changed, and these changes appear to be fundamental.
The interview is available via the link.