Senior US officials CNN spoke to admitted they are disappointed that sanctions on Russia have not had a heavier effect on its economy and predict the harshest effects won’t materialize until next year.
The Russian economy had proved to be more resilient than expected thanks to energy revenues it reaped in the spring-summer with soaring energy prices, partly because after the invasion Europe had been slow to wean itself off Russian energy supplies after years of making itself dependent. Thanks to this and China’s and India’s willingness to buy Russian oil, Russia’s economy only shank by 4% between April and June – below the predicted 15%.
Still, one official and intelligence officials said that in the long-term, Russia’s economy will suffer “enormously,” that Russia’s economic boon from high oil prices is unsustainable, and that it will feel the worst effects of the sanctions in the first half of 2023.
