Topic: Sanctions at work:Russia posts its second highest deficit in the post-Soviet era - page 8. (Read 1715 times)

sanctions are not going to work! that is for sure At some point both the countries have to sit together to find a way out
War wont work - sanctions won't work.

Last year when Russia attacked Ukraine there were rumors that Russian economy will collapse.
But nothing has happened and Russia continue to grow with a more bigger plan. Russia has always been brutal and they will keep doing that in future and keep surviving because they have the strongest army.

The sanctions imposed against Russia are working and continue to gain momentum, regardless of the fact that someone tries to ignore them or downplay their effect. According to experts, in 2023 the annual budget deficit of the Russian Federation will increase by 3-4 times compared to last year. In addition, the National Wealth Fund may be exhausted before the end of 2023.
Already in February 2023, the federal budget deficit of Russia amounted to 820 billion rubles, and in the first two months of the year the total amount was 2.6 trillion rubles, or 88% of the planned deficit for the entire year.

At the same time, for the whole of 2023, the Russian Federation was supposed to go into minus 2.9 trillion rubles. (38.3 billion dollars), but only in January and February of the coming 2023, the "hole" amounted to 2.58 trillion rubles. (34 billion dollars).

Russia's expenses for the war in Ukraine are simply colossal. Since Putin was preparing to occupy Ukraine in just a few days, and the war he unleashed is now in its second year, they were clearly not ready for such a turn of events. Just one massive missile attack on civilian cities in Ukraine with the aim of simply intimidating the population of Ukraine, since it makes no sense from a military point of view, costs Russia from 400 to 700 million dollars. At the same time, in Russia itself, the bulk of the population lives near the poverty line.

It is quite logical that for the first time in many months in Russia, according to Rosstat, debts arose on the salaries of state employees. The growth was 1400%. However, Putin and his propagandists, albeit already in a low voice, insist that everything is going according to plan. Putin already hopes only for a miracle and for his own, now past luck.

https://my.ua/news/cluster/2023-03-10-biudzhetnyi-krizis-nastig-rossiiu-defitsit-prodolzhaetsia-vtoroi-mesiats-biudzhetnikam-zaderzhivaiut-zarplaty
https://borgexpert.com/ru/news/kse-institute-defytsyt-federalnoho-biudzheta-rf-vyrastet-v-3-4-raza-v-2023-hodu

sanctions are not going to work! that is for sure At some point both the countries have to sit together to find a way out
War wont work - sanctions won't work.

Quadrillions from energy exports are only happening thanks to their discounted prices of oil but this can't be sustained in the long term as these resources making financial gain will be depleted in no time and real pressure will mount to political pressure,but with the likes of Putting at the helm of everything its really scary to think about it because the man looks like a life president something we have seen in Zimbabwe and sanctions didn't deter people like the late Robert Mugabe now imagine Putting with all the resources to his disposal the ball is in its citizens hands tbh...the outside world Will bring out what it can but it's people need to do the rest.

sanctions are not going to work! that is for sure

sanctions didn't deter people like the late Robert Mugabe

sanctions are not going to work! that is for sure At some point both the countries have to sit together to find a way out
War wont work - sanctions won't work.

Due to the severe sanctions imposed a year ago, which continue to intensify to the present day, the last international bank Raiffeisenbank leaves Russia, it refuses to open new foreign currency accounts for clients, and also blocks other Russians from accessing the euro, their correspondent accounts are closed. These actions of the bank hit the Russian Federation, since it is he who makes 40-50% of all cross-border payments of the local business.
So international sanctions continue their destructive work for the Russian economy.

Raiffeisenbank began to abandon the Russian Federation after the US Treasury expressed claims to the bank. The point is not only in the actions of the bank in Russia, but also in Syria and the occupied territories of Ukraine. The noose around the Russian economy is getting tighter and tighter.

The bottom line is that when economics are involved, nationalism and pride are useless, you can lie to yourself whatever you want but this won't change a thing, you can dream of anything you want but this won't do any good either once you wake up, so the right choice is doing something about. And the first step for a population to not fall into this is by not having a dictator in charge, not being a slave terrified of going against the ones that should fear your vote, and stop blaming everyone else for the things you could have avoided. Not all resources on earth and all of humankind's glorious history will be able to offset the disaster a moron can unleash!

Wars have many negative effects. Undoubtedly, Russia is currently experiencing one of them. All I can say is this: I hope this data ends the war. Well, will these data end the war? Unfortunately I don't think so... The human tragedy in Ukraine is happening for a reason greater than a few dollars. Bringing the sides together and starting to talk about all possibilities to end the war should be our first priority. I know it's hard, but if we can do that, I think we're going to do something better than talking about all these economic parameters.

Budget income from oil and gas sales reached 521.2 billion roubles last month, compared to 425.5 billion in January and 971.7 billion roubles in February 2022.

Russia's Ministry of Finance said in a separate statement that it sold 3.6 tonnes of gold and 2.3 billion Chinese yuan from the Russian National Wealth Fund (NWF) in January. The sale of both assets added up to 38.5 billion roubles (USD $543 million).

In my opinion, the situation with transnational payments has the following features.... 

Russia's problem is not that the ruble is not a convertible currency.  The Soviet ruble was also not a convertible currency. 

Russia's problem is that international sanctions have been imposed on it, including a ban on the use of the international financial system.  And without the possibility of using this system, it is very difficult to make all cross-border payments.  This applies to both exports and imports of goods. 

The Russian government does not need to convert bitcoins into rubles and vice versa. 

It is important for the Russian government that critical goods for Russia are imported.  And for this it is necessary to export raw materials (for example, hydrocarbons).  It is impossible to transfer rubles abroad and back (foreign banks block such transactions).  Russia is disconnected from the SWIFT payment system. 

And payments with bitcoin cannot be blocked, since bitcoin is not subject to censorship.

so a year of sanctions on russia. and they have a deficit of 2.6%
yet UK/america are saying that UK/america are in a recession of far more than 2.6%
the UK/america is seeing many businesses cutting back on staff
the remaining staff going in strike. the national governments claiming us/uk need to cut back on public spending.
soo who's better off?

With gas prices being lower than last year during this period, but with Russia selling just 1/3 of it now, with Urals trading full 33$ down from a year ago to 52$ but with Russia so desperate to sell that it does so even at $38 per barrel, it's obvious what the budget income will look like this year. On top of that add the hundred do thousands of job losses once companies pulled out, a figure that will start to bite around now since a lot of them were generous enough to make a 6 to 12-month payment before firing people, and the hundreds of thousands dead and mutilated in Ukraine and the hundreds of thousands that fled Russia with full pockets, and those were the guys that earned a lot, a real brain drain that will leave its mark for decades.

But of course, there will be some that will say Russia is stronk, Russia has resources, Russia this and that but Russia is a shadow of the URSS that had all of those and much more, but still ended in the garbage bin of history! You can't wage an economic war when you're dirt poor and your ally is the one that should tell you a few things about the sanctions that turned the wannabe global power into an economy the size of Denmark but with 50% inflation and unable to feed its population, although it also turned out they are pretty good at killing and hanging their own citizens.

The bottom line is that when economics are involved, nationalism and pride are useless, you can lie to yourself whatever you want but this won't change a thing, you can dream of anything you want but this won't do any good either once you wake up, so the right choice is doing something about. And the first step for a population to not fall into this is by not having a dictator in charge, not being a slave terrified of going against the ones that should fear your vote, and stop blaming everyone else for the things you could have avoided. Not all resources on earth and all of humankind's glorious history will be able to offset the disaster a moron can unleash!

I would even go so far as to say that Bitcoin's market cap and trading volume as of today are also indicators that the network is used to cover certain needs like circumventing sanctions. The more political measures like sanctions are imposed, the more attractive will the Bitcoin network become. Authoritarian governments (and others as well of course) will learn the hard way that the ultimate way to transact safely and reliably around the globe in a world of sanctions can only be via a decentralized network like Bitcoin.

The trading volume we currently have is politically relevant. It was in 2017 when we first crossed the billion USD mark. While mostly authoritarian regimes considered banning Bitcoin also back at the time, it wasn't relevant to them anyway as they thought it is not enough volume and liquidity to ever complete huge cross boarder deals anyway. Now it is totally realistic to close a billion dollar deal and agree to transact in Bitcoin. So even these political issues around the world will eventually increase the need for the very network that many of those regimes have or had been trying to ban.

Sanctions on Russia affect its economy.  But over time, the economy adjusts to the reality of sanctions.  Perhaps he may recover soon and be able to find solutions to compensate for the shortage caused by those sanctions.  Do not forget that Iran has been living under harsher sanctions for years.