War Economy: Russia's Economic Development in 2022

After Russia’s invasion of Ukraine, numerous institutes predicted a significant economic slump in Russia in 2022 due to the tightened Western sanctions. This did not materialize. As the energy sector remained almost completely exempt from sanctions until the end of 2022, Russia’s economy saw a significant inflow of foreign currency. This prevented a collapse of the financial system. Statistical data show that in 2022 the war economy was strengthened at the expense of the civilian economy.