MOSCOW – We all remember the grim Western “predictions” (some would call it wishful thinking) of an imminent collapse of Russia’s economy when sanctions were put in place in 2014. Russia survived relatively unscathed. Russia was also called “a giant gas station with nuclear weapons”.
Soon came the downward oil and natural gas price spike. The fall in prices was the result of US-Saudi coordination aimed at significantly damaging Russia’s economy, causing the Russian people to get out in the streets, depose Vladimir Putin and reverting the country to the hell of the ’90s-style “freedom and democracy”.
As we know, it all failed miserably. It actually the EU which experienced a significant economic slowdown while losing Russia’s massive market. Driven by domestic demand, this caused the revival of Russia’s internal economy. In other words, sanctions didn’t just fail to damage the Russian economy, but they even helped boost it.
Apart from the civilian sector itself, Russia’s Military-Industrial Complex will also increase its share in the civilian market to as much as 25% after 2021. The share of civilian products in the Russian defense industry’s enterprises already exceeded 20% in 2018, Deputy Prime Minister Yury Borisov, who is responsible for the defense industry, stated at a meeting with Vladimir Putin. According to him, the industry is actively involved in import substitution and diversification. It even has an extra strategy in case of new sanctions.