Russian economy benefits from US sanctions

Washington: US economist Michael Hudson has concluded that the sanctions imposed on Russia by America and European countries have boosted the Russian economy. These sanctions have ended the dependence on the Russian economy. In addition, Hudson claimed that Russia’s efforts to de-dollarize to stop transactions in dollars have succeeded beyond imagination.

After the United States and European countries imposed sanctions, Russia has only benefited. Because now, instead of importing cars from Germany, Russia is speeding up the production of cars in its own country with the help of China. Along with this, Russia is promoting domestic production instead of importing western products. Russia may not just produce movies from Walt Disney Studios and Italian handbags. Everything else they need can be made in Russia, Hudson retorted.

The United States and the West decided to impose restrictions on Russian fuel. It was argued that this would reduce Russian revenues from fuel exports. But Russia is making more money by exporting less fuel, Hudson added. Low Russian fuel exports mean fuel prices will remain tight in international markets. Economist Hudson points out that although fuel exports will decrease, the increased prices will cause a significant reduction in Russian revenues.

Even before the start of the Ukraine conflict, Russia had already taken steps to reduce USD transactions. But after the United States imposed restrictions on Russian dollar transactions following the Ukraine conflict, Russia’s de-dollarization was expedited. It appears to have been a huge success. Hudson pointed out that because of this, the European countries that buy fuel from Russia have been told to pay their bills in Roubles. Moreover, by stating that European countries are suffering the most because of their stance against Russia, Hudson alleged that there is a US conspiracy behind this. The United States has nothing to do with whether Russia wins or loses the ongoing conflict in Ukraine. Michael Hudson has made a sensational claim that the US goal was to eliminate its rival European countries, specifically a strong adversary like Germany with the Ukraine conflict.