02-06-2023, 06:10 PM
Getting back to the war in Ukraine, this news caught my attention.
https://www.wsj.com/articles/russian-def...mwhatsnews
It looks like the war and sanctions may finally be catching up to Russia. All this while the West is tightening the sanctions noose on Russia's ability to earn revenues from oil and gas. Of course, it is a race between tightening sanctions and Russia's ability to adapt to the sanctions by reorienting its economy away from Europe.
If, as the article notes, Russia's Sovereign Wealth Fund has assets equivalent to 7.2% of GDP in it, and its deficit is around 2 - 2.8% of GDP, it will have 3 - 4 years left of runway.
BC
https://www.wsj.com/articles/russian-def...mwhatsnews
It looks like the war and sanctions may finally be catching up to Russia. All this while the West is tightening the sanctions noose on Russia's ability to earn revenues from oil and gas. Of course, it is a race between tightening sanctions and Russia's ability to adapt to the sanctions by reorienting its economy away from Europe.
If, as the article notes, Russia's Sovereign Wealth Fund has assets equivalent to 7.2% of GDP in it, and its deficit is around 2 - 2.8% of GDP, it will have 3 - 4 years left of runway.
BC