BOFIT Forecast for Russia 2022–2024 / 2

Abstract

Russia’s invasion of Ukraine is having profound impacts on Russia’s economic future. Western sanctions continue to raise both the direct and incidental costs of war. EU import bans are reducing Russian budget revenues. International export bans on dual-use products are limiting Russia’s ability to arm and supply its invasion force. The lack of access to high-tech inputs is eroding Russia’s opportunities for future growth.