Publication

This commentary argues that Western sanctions have significantly weakened Moscow’s ability to protect itself from the oil price slump and other economic challenges. Indeed, the text's authors point out that as a consequence of the sanctions, capital outflows have increased while foreign investment has fallen, which means that Russia's economic recession will continue. The authors also suggest that the inability to access capital in Russia may hinder the implementation of important infrastructure projects and increase Moscow’s openness to foreign investments from China and India, particularly in its oil and gas sectors.