Economics
Sanctions-Proofing Russia Helps Keep Economy Chugging Along
- Policy revamp means Russia less vulnerable as standoff worsens
- Growth is poised to decelerate after pickup in second quarter
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President Vladimir Putin’s efforts to protect Russia after past rounds of U.S. sanctions are leaving the economy more insulated even as the threat of further penalties rattles markets this week.
Four years after the first major curbs were imposed over the Ukraine crisis, Russia’s economy is growing about as fast as the central bank thinks it can, thanks to policies that have allowed the currency to trade freely and reduced reliance on foreign capital. But that very self-restraint means growth is hardly enough to achieve Putin’s goals of dramatically raising living standards, with gross domestic product gaining less than forecast last quarter.