Russian Investment Helped It Avoid Worst of Sanctions in 2022, Report Says
Despite the massive sanctions imposed on Russia in the wake of its invasion of Ukraine, the country has seen a 6% increase in capital expenditure, contrasted with initial forecasts of an up to a 20% decline, Bloomberg reported Feb. 8.…
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Russia's response to the sanctions has been to spend its way out, with large and small companies looking to replace foreign equipment and software or funnelling money into building new supply chains to reach new markets. Bloomberg said that while investment has allowed Russia to stave off many of the worst economic effects of the sanctions and export controls, its investment future is much more bleak. Bloomberg Economics predicts that fixed-asset investment will dry up by 5% in 2023. While government and state-owned corporate investment may yet further increase, private sector investment is poised to dip.