DISINFO: Germany acts like a kamikaze pilot as its sanctions are strengthening Russia
SUMMARY
The German economy fell by 0.3% in the last quarter, the entire eurozone is at risk of stagnation, while the Russian economy is supposed to grow by 2.5% despite sanctions. The German federal government is behaving like a kamikaze pilot, enjoying Washington’s approval. Paradoxically, the sanctions are strengthening Russia while the German economy is apparently being destroyed.
RESPONSE
Recurring pro-Kremlin disinformation narrative about the impact of Western sanctions on Russia. These are often presented as “self-destructive” for the West and “beneficial” to Russia. The article also claims that the EU was forced to impose these “unbeneficial” sanctions under US control. The wider aim appears to be to undermine the popular support for sanctions in the western states.
The claims about Russia’s economic success contradict factual evidence. The provisional economic figures are not definitive, and it is too early to assess the performance of the Russian economy in 2023. Adding to the difficulty of assessing the true state of the Russian economy is the fact that, for about a year, the Russian Central Bank and Rosstat - the national statistical agency - stopped publishing a number of key economic data will less details than in the past, e.g. details on banking, production, trade and consumption data.
The war and western sanctions transformed the Russian economy in several ways. Importation and exportation schemes changed because of the international sanctions. Economic stakeholders changed, as many foreign companies left the country and the share of state-controlled companies now reaches 70%. Part of the skilled manpower emigrated to foreign countries to avoid draft or repression. The brain drain represents hundreds of thousands of skilled professionals. It is estimated that up to 1.3 million people under the age of 35 left the country in 2022. Additionally, foreign investment collapsed.
In April 2023, Russia’s economy ministry revised its 2023 gross domestic product (GDP) forecast to 1.2% growth from a 0.8% contraction, but lowered its forecast for 2024, mirroring a wider trend that anticipates sluggish longer term prospects.
The International Monetary Fund also raised its forecast for Russia’s 2023 economic growth, but said the country may see a sharply wider budget deficit and a smaller current account surplus this year. It said Russia’s global isolation and lower energy revenues could harm its growth potential for years.
Read more about the impact of sanctions on Russian economy here.
Read an earlier detailed analysis of the Russian disinformation narratives about EU sanctions.
Read related stories: The latest EU sanctions package is ineffective and doomed to fail, Western sanctions are not working, Inflation in Russia is between 2.5 and 3%, Anti-Russian sanctions broke EU economy.