Despite being subjected to more than 500 trade sanctions from the US and the European Union as of 2014, the Russian economy is expected to experience substantial growth, with the International Monetary Fund (IMF) predicting that it will grow 2.6% in 2024, more than double last year’s prediction. This growth comes after Russia has faced sanctions since 2014, especially notable since the invasion of Ukraine on February 24, 2022 and the subsequent US seizure of a significant quantity of reserves from the Central Bank of Moscow.
Vladimir Putin’s ability to turn Russia into a next-generation “war economy” fuels this growth. He has achieved this by constructing a “Military-Industrial Complex” with the technology of the 21st century. Putin’s rise to power in 1999 led to the reconstruction of the Russian State, reversing the immense power vacuum that resulted from the Soviet Union’s collapse in 1991, developing a highly dynamic capitalist system within the “Military-Industrial Complex”.
Russia has embraced turning to Asia, primarily China and India as a strategic move. This has led to a growing trade relationship with these countries, seeing enhanced bilateral trade agreements and a significant increase in the use of the yuan or renminbi in international transactions. This turning to Asia has enabled Russia to thrive in international trade regardless of the sanctions imposed by the US and the EU. The technological revolution has produced complete integration of the capitalist system since 2008/2009, and in attempting to isolate Russia, the US and the EU have proven that it is a non-concept. These developments have shown the infeasibility of isolating and shutting down Russia’s economy on the global stage.