'Sanctions Don't Work': What Is Really Happening to Russia's Economy

What the propaganda claims

“Russia’s economy is growing! GDP is up! The ruble is stable! Sanctions are only hurting Europe!”

What is actually happening

Technological degradation

• Aviation: Boeing and Airbus have stopped supplying spare parts. Russian airlines are cannibalising aircraft (stripping some for parts to keep others flying). By 2025, ~95 aircraft have been taken out of service
• Automotive: Lada Granta is now produced without airbags or ABS — a return to 1990s standards
• Microchips: access to modern chips (<28 nm) has been cut off. Russia buys through intermediaries at enormous markups and with delays
• Oil extraction: without Western technology, complex drilling degrades — new deposits cannot be developed

Brain drain

After February 2022, 700,000–1,000,000 people left Russia — predominantly young, educated, IT specialists:

• Georgia, Armenia, Kazakhstan, the UAE, Turkey absorbed hundreds of thousands
• Russia’s IT sector lost 50,000–100,000 specialists
• This is the largest wave of emigration from Russia since 1917

Dependence on China

Russia replaced Western partners with China — but on far worse terms:

• China buys Russian oil at a 20–30% discount from market price
• China supplies technology on its own terms — Russia is becoming a raw-material appendage
• The yuan is replacing the dollar in trade — but this is dependence on Beijing, not “independence from the West”

What hides behind “GDP growth”

Russia’s GDP formally grows — but:

• Military spending accounts for ~40% of the budget — producing tanks and missiles “increases GDP” but not living standards
• Inflation — real inflation is significantly higher than official figures (16%+ by independent estimates)
• The central bank key rate — raised to 21% — this is the level of a crisis economy
• The ruble’s exchange rate — maintained artificially through capital controls

Impact on living standards

• Real incomes are falling (despite official data claiming “growth”)
• Food prices have risen by 30–50%
• Quality of goods is declining (parallel imports without warranties)
• Medicine and medical equipment shortages

Are sanctions harming Europe?

Yes, Europe also suffered losses — but:

• Energy dependence on Russia has been significantly reduced (gas: from 40% to <15%)
• LNG terminals were built in record time
• Renewable energy was accelerated
• The European economy adapted much faster than expected

Conclusion

Sanctions are not a “magic button” that stops a war in a day. They are a long-term strategy of degrading Russia’s military potential. Technological isolation, brain drain, dependence on China and the destruction of industry are real consequences that intensify with each passing year.