Russia prepares for decades of Western sanctions, pushes international 'anti-sanctions coalition'

Russia has become the most sanctioned country by the West since launching its special military operation in Ukraine in February 2022, surpassing both Iran and North Korea. Despite the pressure, the Russian economy grew by 4.7% in the first half of 2024.

Russia is prepared for 'decades' of Western sanctions. (Source: National Law Review)

On August 16, speaking at a seminar titled "Sanctions against Russia - Towards infinity?", Dmitry Birichevsky, head of the economic cooperation department of the Russian Foreign Ministry, said that economic sanctions imposed by the West on Russia will remain in effect for decades, even if there is a peaceful solution in Ukraine.

Birichevsky said: "This is a story for decades to come. Regardless of the developments and outcomes of a peaceful solution in Ukraine, in reality, it is just a pretext."

The seminar is part of a broader debate in Russian politics and business about whether Moscow should strive for a relaxation of sanctions or accept them as a long-term reality and learn to deal with the issues associated with sanctions.

Russian President Vladimir Putin has stated that lifting all sanctions imposed on Russia would be one of the conditions for achieving peace in Moscow.

Birichevsky said that sanctions have some benefits, prompting Russia to restructure its economy and produce more value-added goods, the kind that were previously imported from Western countries.

Regarding long-term plans, immediately after his inauguration for his new term (May 7th), Russian President Vladimir Putin signed a decree outlining Russia's national development goals for 2030 and a vision for 2036. Among these, the top economic goal set by President Putin is to ensure economic growth above the world average and achieve the fourth-largest global GDP (GDP) ranking in terms of purchasing power parity (PPP) by 2030.

To achieve that goal, Putin wants to transform the Russian economy into a supply-side economy. According to the Vedomosti newspaper, this transition to a supply-side economy was first announced by President Putin at the Saint Petersburg International Economic Forum in June 2023.

Key points for shifting to a supply-side economy include increasing the volume of goods produced, reducing the share of imports of goods and services to 17%, increasing household income, and maintaining workers' wages at a rate no lower than inflation.

According to Moscow, the four main conditions for the formation of a supply-side economy are: increasing labor productivity, increasing investment in the economy by 20% by 2030 compared to the present, accelerating the growth rate of non-resource and non-energy products to at least two-thirds of the current export volume, and improving international logistics corridors for Russian goods.

Furthermore, according to Dmitry Birichevsky, Moscow is consulting on strategies with other sanctioned countries such as Iran, North Korea, and Venezuela, with the aim of creating an international "anti-sanctions" alliance.

Source: https://baoquocte.vn/nga-chuan-bi-cho-nhieu-thap-ky-chiu-lenh-trung-phat-cua-phuong-tay-thuc-day-lien-minh-chong-trung-phat-quoc-te-282888.html