Vladimir Milov was Putin’s deputy energy minister and now lives in exile. He explains why the economic sanctions against Russia are working – and how the Kremlin boss wants to convince the West otherwise.
The sanctions against Russia are working. “But,” said former Russian deputy energy minister Vladimir Milov, “the West must be patient.” The EU approved a total of eight sanctions packages for Russia and Belarus. Each with a different effect.
Kremlin boss Vladimir Putin wanted the West to believe that the sanctions would come to naught. Milow, a former Kremlin aide who has renounced Putin, explains in an article for the Friedrich-Ebert-Foundation: “Official economic figures do not reflect the real situation,” says Milow.
According to Moscow, unemployment in Russia stands at 3.7 percent. “That would be an absolute record,” said the economist. Putin obscures the numbers with hidden unemployment such as training and unpaid vacations. In fact, Russian unemployment is 10 percent. “This is comparable to the second half of the 1990s, when Russia had the highest unemployment rate of 10 to 13 percent,” Milow writes.
“The ruble is strong indeed”
Another argument: the strong currency. “The ruble is indeed strong,” says Milow. But only because the sanctions and Putin make it difficult for companies to exchange foreign currencies. “The supposedly strong ruble is supported by draconian exchange controls and a collapse in imports. These policies are causing serious damage to industries such as steel: finished steel production fell by more than 7 percent by 2022,” explains Milow.
According to the Russian Ministry of Finance, Russian GDP is shrinking less than the West expects, which can be explained by the strong economic performance. “However, it is important to remember that this GDP figure also includes the increase in production in the arms industry,” says Milow.
Already half of the main battle tanks lost
A newly manufactured main battle tank promptly sent to the front and shot down by Ukraine is still counted as a nominal contribution to Russia’s GDP. And the Russian military has already lost half of its main battle tanks in its offensive war against Ukraine, according to US Defense Department estimates.
According to Milow, another misconception is that Russia can compensate for the European sales market by exporting to India or China. “None of these countries are interested in helping Russia develop its own competitive manufacturing sector.” Russian raw materials such as gas, oil, coal and logs are currently very cheap.
Public opinion is slowly turning against Putin
However, the Puints regime is not about to collapse, says the former minister. Organized opposition has been crushed. But public opinion is slowly turning against Putin, says Milow. “Even with the Soviet Union things moved quickly in the end.” What the West needs is patience.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
