The new package of sanctions “may barely dent Fortress Russia,” according to Ruchir Sharma, Head of Emerging Markets at Morgan Stanley Investment Management.
Seven years of sanctions have hardened the Russian economy against outside pressure, the expert wrote, quoted by Rossiyskaya Gazeta. Ruchir Sharma underlined that President Vladimir Putin has long been relatively careful on macroeconomic policy and focused on turning Russia into a financial fortress invulnerable to external pressure, including sanctions.
The economist added that import substitution played a role. That policy invigorated Russian agriculture and reduced dependence on foreign suppliers. As a result, the ruble has become less dependent on world oil prices.
Invest Foresight previously reported that the United States had imposed new sanctions against Russia that affected Russian defense technology exports.