According to the Carnegie Foundation, the Russian economy is still strong despite rising military spending and sanctions.
In fact, the IMF predicts that the Russian Federation’s economy will grow faster this year than all other developed economies, including the US. This is partly because Moscow has found ways around sanctions, such as selling oil to allies while importing Western goods through third countries.
“The current order will probably begin to fall apart within a year and a half due to growing imbalances and possible social problems,” emphasizes Oleksandra Prokopenko, a researcher at the Carnegie Eurasian Center.
Three economists agree that the country could be engulfed in mass unrest by the end of the year, especially if the West continues to tighten sanctions against Moscow.
At the same time, the Russian economy’s stability is demonstrated by Sberbank’s largest profit in its history. It now must pay ₽752B ($8B) in dividends. Half of this amount will go directly to the Russian budget since the state owns 50% +1 share of Sberbank.