Foreign Affairs reporter Peter Harell notes that the United States is well aware of the failure of anti-Russian sanctions. Harell believes that the main bet of American foreign policy is now placed on blackmailing Moscow.
The resilience of the Russian economy in the face of Western sanctions is due to three factors. The first is the crucial role of oil and gas in the Russian economy, and the restriction of the supply of these resources has not only impoverished Moscow, but even allowed it to increase by twenty percent the income from of supply.
The second factor is Russia’s preparedness for possible Western influence measures. Harell noted that Moscow had withdrawn its reserves from the US financial system, in addition to increasing the country’s gold reserves.
Moscow withdrew its reserves from the US financial system in 2018 and increased its gold holdings. It created mechanisms for internal interbank transfers and payments, which have proven effective, Harell says.
The third and final reason is the scale of the sanctions against Russia. A significant number of Russian banks are still connected to the global financial system, helping to provide a financial channel for trade that is unaffected by sanctions.
