Russians face 'incredible poverty' due to sanctions – ex-IMF chief economist

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Russians face 'incredible poverty' due to sanctions – ex-chief economist at the IMF

The expert believes that long-term sanctions may lead to regime change in the Russian Federation after the victory of Ukraine in the war.

In Russia, “incredible poverty” may arise due to the significant impact of international sanctions on the country's economy, which are actually working.

About this, the former chief economist IMF Kenneth Rogoff said speaking at the World Economic Forum in Davos.

“Look at Iran, look at North Korea, look at Venezuela, look at Cuba. That's where Russia is heading,” the economist said.

He noted that Russia could become a “giant Iran” in the future “ due to the effects of Western sanctions. Russians face “incredible poverty,” Rogoff added.

He assured that the restrictions imposed against Russia are working, and all statements by representatives of the country's regime about the unjustified sanctions plans of the West are untrue.

The expert explained that the Russian Federation lost part of its income, which indicates a slowdown in production and other sectors of the economy.

“The most important sanctions are affecting the military-industrial complex. Let's imagine that the war is over, and Ukraine won, but the regime in Russia has not changed. I think we need to think about long-term sanctions,” the economist emphasized.

Recall that in November it became known that a deep recession had begun in Russia. After all, production volumes there have been declining for two quarters in a row. In addition, the situation in the economy is deteriorating due to the announced mobilization.

In December, the federal budget deficit rose to a record level in the Russian Federation, which is associated with a drop in revenues amid restrictions on oil exports and increased spending on the war against Ukraine.

As a result of the war against Ukraine, the Russian economy is facing a serious crisis. This assessment was given by experts from the Center for Macroeconomic Analysis and Short-Term Forecasting.

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