Russia’s economy holds up, but growing challenges test Putin
Western sanctions have hit Russian banks, wealthy individuals and technology imports. But after a year of far-reaching restrictions aimed at degrading Moscow’s war chest, economic life for ordinary Russians doesn’t look all that different than it did before the invasion of Ukraine.
Sergey Guneyev, Associated Press
Russian President Vladimir Putin gestures while speaking at a news conference following a meeting of the State Council at the Kremlin on Dec. 22 in Moscow, Russia. Russia's economy has weathered the West's unprecedented economic sanctions far better than expected.
There’s no mass unemployment, no plunging currency, no lines in front of failing banks. The assortment at the supermarket is little changed, with international brands still available or local substitutes taking their place.
Crowds might have thinned at some Moscow malls, but not drastically. Some foreign companies like McDonald’s and Starbucks have been taken over by local owners who slapped different names on essentially the same menu.
“Economically, nothing has changed,” said Vladimir Zharov, 53, who works in television. “I work as I used to work, I go shopping as I used to. Well, maybe the prices have risen a little bit, but not in such a way that it is very noticeable.”
Alexander Zemlianichenko, Associated Press
People line up to visit a newly opened restaurant in a former McDonald's outlet on Jan. 25 in Moscow, Russia. Some foreign companies like McDonald's and Starbucks have been taken over by local owners who slapped different names on essentially the same menu.
Russia’s economy has weathered the West’s unprecedented economic sanctions far better than expected. But with restrictions finally tightening on the Kremlin’s chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin’s fortress economy.
Economists say sanctions on Russian fossil fuels only now taking full effect — such as a price cap on oil — should eat into earnings that fund the military’s attacks on Ukraine. Some analysts predict signs of trouble — strained government finances or a sinking currency — could emerge in the coming months.
But other economists say the Kremlin has significant reserves of money that haven’t been hit by sanctions, while links to new trade partners in Asia have quickly taken shape. They say Russia isn’t likely to run out of money this year but instead will face a slow slide into years of economic stagnation.
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Here are 5 ways the war in Ukraine has changed the worldUkrainian Presidential Press Office via AP, File
Three months before the invasion, then-British Prime Minister Boris Johnson scoffed at suggestions that the British army needed more heavy weapons. “The old concepts of fighting big tank battles on European landmass,” he said, “are over.”
Johnson is now urging the U.K. to send more battle tanks to help Ukraine repel Russian forces.
Despite the role played by new technology such as satellites and drones, this 21st-century conflict in many ways resembles one from the 20th. Fighting in eastern Ukraine’s Donbas region is a brutal slog, with mud, trenches and bloody infantry assaults reminiscent of World War I.
The conflict has sparked a new arms race that reminds some analysts of the 1930s buildup to World War II. Russia has mobilized hundreds of thousands of conscripts and aims to expand its military from 1 million to 1.5 million troops. The U.S. has ramped up weapons production to replace the stockpiles shipped to Ukraine. France plans to boost military spending by a third by 2030, while Germany has abandoned its longstanding ban on sending weapons to conflict zones and shipped missiles and tanks to Ukraine.
Before the war, many observers assumed that military forces would move toward more advanced technology and cyber warfare and become less reliant on tanks or artillery, said Patrick Bury, senior lecturer in security at the University of Bath.
But in Ukraine, guns and ammunition are the most important weapons.
"It is, for the moment at least, being shown that in Ukraine, conventional warfare — state-on-state — is back,” Bury said.
Ukrainian Presidential Press Office via AP, FileThree months before the invasion, then-British Prime Minister Boris Johnson scoffed at suggestions that the British army needed more heavy weapons. “The old concepts of fighting big tank battles on European landmass,” he said, “are over.”
Johnson is now urging the U.K. to send more battle tanks to help Ukraine repel Russian forces.
Despite the role played by new technology such as satellites and drones, this 21st-century conflict in many ways resembles one from the 20th. Fighting in eastern Ukraine’s Donbas region is a brutal slog, with mud, trenches and bloody infantry assaults reminiscent of World War I.
The conflict has sparked a new arms race that reminds some analysts of the 1930s buildup to World War II. Russia has mobilized hundreds of thousands of conscripts and aims to expand its military from 1 million to 1.5 million troops. The U.S. has ramped up weapons production to replace the stockpiles shipped to Ukraine. France plans to boost military spending by a third by 2030, while Germany has abandoned its longstanding ban on sending weapons to conflict zones and shipped missiles and tanks to Ukraine.
Before the war, many observers assumed that military forces would move toward more advanced technology and cyber warfare and become less reliant on tanks or artillery, said Patrick Bury, senior lecturer in security at the University of Bath.
But in Ukraine, guns and ammunition are the most important weapons.
"It is, for the moment at least, being shown that in Ukraine, conventional warfare — state-on-state — is back,” Bury said.
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Here are 5 ways the war in Ukraine has changed the worldAP Photo/Markus Schreiber, File
Russian President Vladimir Putin hoped the invasion would split the West and weaken NATO. Instead, the military alliance has been reinvigorated. A group set up to counter the Soviet Union has a renewed sense of purpose and two new aspiring members in Finland and Sweden, which ditched decades of nonalignment and asked to join NATO as protection against Russia.
The 27-nation European Union has hit Russia with tough sanctions and sent Ukraine billions in support. The war put Brexit squabbles into perspective, thawing diplomatic relations between the bloc and awkward former member Britain.
“The EU is taking sanctions, quite serious sanctions, in the way that it should. The U.S. is back in Europe with a vengeance in a way we never thought it would be again,” said defense analyst Michael Clarke, former head of the Royal United Services Institute think tank.
NATO member states have poured weapons and equipment worth billions of dollars into Ukraine. The alliance has buttressed its eastern flank, and the countries nearest to Ukraine and Russia, including Poland and the Baltic states, have persuaded more hesitant NATO and European Union allies, potentially shifting Europe’s center of power eastwards.
There are some cracks in the unity. Hungarian Prime Minister Viktor Orban, Putin’s closest ally in the EU, has lobbied against sanctions on Moscow, refused to send weapons to Ukraine and held up an aid package from the bloc for Kyiv.
Western unity will come under more and more pressure the longer the conflict grinds on.
“Russia is planning for a long war,” NATO Secretary-General Jens Stoltenberg said at the end of 2022, but the alliance was also ready for the “long haul.”
AP Photo/Markus Schreiber, FileRussian President Vladimir Putin hoped the invasion would split the West and weaken NATO. Instead, the military alliance has been reinvigorated. A group set up to counter the Soviet Union has a renewed sense of purpose and two new aspiring members in Finland and Sweden, which ditched decades of nonalignment and asked to join NATO as protection against Russia.
The 27-nation European Union has hit Russia with tough sanctions and sent Ukraine billions in support. The war put Brexit squabbles into perspective, thawing diplomatic relations between the bloc and awkward former member Britain.
“The EU is taking sanctions, quite serious sanctions, in the way that it should. The U.S. is back in Europe with a vengeance in a way we never thought it would be again,” said defense analyst Michael Clarke, former head of the Royal United Services Institute think tank.
NATO member states have poured weapons and equipment worth billions of dollars into Ukraine. The alliance has buttressed its eastern flank, and the countries nearest to Ukraine and Russia, including Poland and the Baltic states, have persuaded more hesitant NATO and European Union allies, potentially shifting Europe’s center of power eastwards.
There are some cracks in the unity. Hungarian Prime Minister Viktor Orban, Putin’s closest ally in the EU, has lobbied against sanctions on Moscow, refused to send weapons to Ukraine and held up an aid package from the bloc for Kyiv.
Western unity will come under more and more pressure the longer the conflict grinds on.
“Russia is planning for a long war,” NATO Secretary-General Jens Stoltenberg said at the end of 2022, but the alliance was also ready for the “long haul.”
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Here are 5 ways the war in Ukraine has changed the worldMikhail Klimentyev, Sputnik, Kremlin Pool Photo via AP, File
The war has made Russia a pariah in the West. Its oligarchs have been sanctioned and its businesses blacklisted, and international brands including McDonald's and Ikea have disappeared from the country’s streets.
Yet Moscow is not entirely friendless. Russia has strengthened economic ties with China, though Beijing is keeping its distance from the fighting and so far has not sent weapons. The U.S. has recently expressed concern that may change.
China is closely watching a conflict that may serve as either encouragement or warning to Beijing about any attempt to reclaim self-governing Taiwan by force.
Putin has reinforced military links with international outcasts North Korea and Iran, which supplies armed drones that Russia unleashes on Ukrainian infrastructure. Moscow continues to build influence in Africa and the Middle East with its economic and military clout. Russia’s Wagner mercenary group has grown more powerful in conflicts from the Donbas to the Sahel.
In an echo of the Cold War, the world is divided into two camps, with many countries, including densely populated India, hedging their bets to see who emerges on top.
Tracey German, professor of conflict and security at King’s College London, said the conflict has widened a rift between the “U.S.-led liberal international order” on one side, and angry Russia and emboldened rising superpower China on the other.
Mikhail Klimentyev, Sputnik, Kremlin Pool Photo via AP, FileThe war has made Russia a pariah in the West. Its oligarchs have been sanctioned and its businesses blacklisted, and international brands including McDonald's and Ikea have disappeared from the country’s streets.
Yet Moscow is not entirely friendless. Russia has strengthened economic ties with China, though Beijing is keeping its distance from the fighting and so far has not sent weapons. The U.S. has recently expressed concern that may change.
China is closely watching a conflict that may serve as either encouragement or warning to Beijing about any attempt to reclaim self-governing Taiwan by force.
Putin has reinforced military links with international outcasts North Korea and Iran, which supplies armed drones that Russia unleashes on Ukrainian infrastructure. Moscow continues to build influence in Africa and the Middle East with its economic and military clout. Russia’s Wagner mercenary group has grown more powerful in conflicts from the Donbas to the Sahel.
In an echo of the Cold War, the world is divided into two camps, with many countries, including densely populated India, hedging their bets to see who emerges on top.
Tracey German, professor of conflict and security at King’s College London, said the conflict has widened a rift between the “U.S.-led liberal international order” on one side, and angry Russia and emboldened rising superpower China on the other.
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Here are 5 ways the war in Ukraine has changed the worldAP Photo/Efrem Lukatsky, File
The war’s economic impact has been felt from chilly homes in Europe to food markets in Africa.
Before the war, European Union nations imported almost half their natural gas and third of their oil from Russia. The invasion, and sanctions slapped on Russia in response, delivered an energy price shock on a scale not seen since the 1970s.
The war disrupted global trade that was still recovering from the pandemic. Food prices have soared, since Russia and Ukraine are major suppliers of wheat and sunflower oil, and Russia is the world’s top fertilizer producer.
Grain-carrying ships have continued to sail from Ukraine under a fragile U.N.-brokered deal, and prices have come down from record levels. But food remains a geopolitical football. Russia has sought to blame the West for high prices, while Ukraine and its allies accuse Russia of cynically using hunger as a weapon.
The war "has really highlighted the fragility” of an interconnected world, just as the pandemic did, German said, and the full economic impact has yet to be felt.
The war also roiled attempts to fight climate change, driving an upsurge in Europe’s use of heavily polluting coal. Yet Europe’s rush away from Russian oil and gas may speed the transition to renewable energy sources faster than countless warnings about the dangers of global warming. The International Energy Agency says the world will add as much renewable power in the next five years as it did in the last 20.
AP Photo/Efrem Lukatsky, FileThe war’s economic impact has been felt from chilly homes in Europe to food markets in Africa.
Before the war, European Union nations imported almost half their natural gas and third of their oil from Russia. The invasion, and sanctions slapped on Russia in response, delivered an energy price shock on a scale not seen since the 1970s.
The war disrupted global trade that was still recovering from the pandemic. Food prices have soared, since Russia and Ukraine are major suppliers of wheat and sunflower oil, and Russia is the world’s top fertilizer producer.
Grain-carrying ships have continued to sail from Ukraine under a fragile U.N.-brokered deal, and prices have come down from record levels. But food remains a geopolitical football. Russia has sought to blame the West for high prices, while Ukraine and its allies accuse Russia of cynically using hunger as a weapon.
The war "has really highlighted the fragility” of an interconnected world, just as the pandemic did, German said, and the full economic impact has yet to be felt.
The war also roiled attempts to fight climate change, driving an upsurge in Europe’s use of heavily polluting coal. Yet Europe’s rush away from Russian oil and gas may speed the transition to renewable energy sources faster than countless warnings about the dangers of global warming. The International Energy Agency says the world will add as much renewable power in the next five years as it did in the last 20.
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Here are 5 ways the war in Ukraine has changed the worldAP Photo/Visar Kryeziu, File
The conflict is a stark reminder that individuals have little control over the course of history. No one knows that better than the 8 million Ukrainians who have been forced to flee homes and country for new lives in communities across Europe and beyond.
For millions of people less directly affected, the sudden shattering of Europe’s peace has brought uncertainty and anxiety.
Putin’s veiled threats to use atomic weapons if the conflict escalates revived fears of nuclear war that had lain dormant since the Cold War. Fighting has raged around the Zaporizhzhia nuclear power plant, raising the specter of a new Chernobyl.
Patricia Lewis, director of the international security program at think-tank Chatham House, said Putin's nuclear saber-rattling had provoked “more anger than fear” in the West. But concerns about nuclear escalation were heightened by Putin's Feb. 21 announcement that he was suspending Russia's participation in its sole remaining nuclear arms control treaty with the U.S.
Putin stopped short of withdrawing completely from the New START treaty and said Moscow would respect the treaty’s caps on nuclear weapons, keeping a faint glimmer of arms control alive.
AP Photo/Visar Kryeziu, FileThe conflict is a stark reminder that individuals have little control over the course of history. No one knows that better than the 8 million Ukrainians who have been forced to flee homes and country for new lives in communities across Europe and beyond.
For millions of people less directly affected, the sudden shattering of Europe’s peace has brought uncertainty and anxiety.
Putin’s veiled threats to use atomic weapons if the conflict escalates revived fears of nuclear war that had lain dormant since the Cold War. Fighting has raged around the Zaporizhzhia nuclear power plant, raising the specter of a new Chernobyl.
Patricia Lewis, director of the international security program at think-tank Chatham House, said Putin's nuclear saber-rattling had provoked “more anger than fear” in the West. But concerns about nuclear escalation were heightened by Putin's Feb. 21 announcement that he was suspending Russia's participation in its sole remaining nuclear arms control treaty with the U.S.
Putin stopped short of withdrawing completely from the New START treaty and said Moscow would respect the treaty’s caps on nuclear weapons, keeping a faint glimmer of arms control alive.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Emilio Morenatti, File
On Feb. 24, Russian President Vladimir Putin launches an invasion of Ukraine from the north, east and south. He says the "special military operation" is aimed at "demilitarization" and "denazification" of the country to protect ethnic Russians, prevent Kyiv's NATO membership and to keep it in Russia's "sphere of influence." Ukraine and the West say it's an illegal act of aggression against a country with a democratically elected government and a Jewish president whose relatives were killed in the Holocaust.
Russian troops quickly reach Kyiv's outskirts, but their attempts to capture the capital and other cities in the northeast meet stiff resistance. Ukrainian President Volodymyr Zelenskyy records a video outside his headquarters to show he is staying and remains in charge.
About the photo: Traffic jams are seen as people leave the city of Kyiv, Ukraine, Thursday, Feb. 24, 2022.
AP Photo/Emilio Morenatti, FileOn Feb. 24, Russian President Vladimir Putin launches an invasion of Ukraine from the north, east and south. He says the "special military operation" is aimed at "demilitarization" and "denazification" of the country to protect ethnic Russians, prevent Kyiv's NATO membership and to keep it in Russia's "sphere of influence." Ukraine and the West say it's an illegal act of aggression against a country with a democratically elected government and a Jewish president whose relatives were killed in the Holocaust.
Russian troops quickly reach Kyiv's outskirts, but their attempts to capture the capital and other cities in the northeast meet stiff resistance. Ukrainian President Volodymyr Zelenskyy records a video outside his headquarters to show he is staying and remains in charge.
About the photo: Traffic jams are seen as people leave the city of Kyiv, Ukraine, Thursday, Feb. 24, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Evgeniy Maloletka, File
On March 2, Russia claims control of the southern city of Kherson. In the opening days of March, Russian forces also seize the rest of the Kherson region and occupy a large part of the neighboring Zaporizhzhia region, including the Zaporizhzhia Nuclear Power Plant, Europe's largest.
The Russian army soon gets stuck near Kyiv, and its convoys — stretching along highways leading to the Ukrainian capital — become easy prey for Ukrainian artillery and drones.
About the photo: Russian's army tanks move down a street on the outskirts of Mariupol, Ukraine, Friday, March 11, 2022.
AP Photo/Evgeniy Maloletka, FileOn March 2, Russia claims control of the southern city of Kherson. In the opening days of March, Russian forces also seize the rest of the Kherson region and occupy a large part of the neighboring Zaporizhzhia region, including the Zaporizhzhia Nuclear Power Plant, Europe's largest.
The Russian army soon gets stuck near Kyiv, and its convoys — stretching along highways leading to the Ukrainian capital — become easy prey for Ukrainian artillery and drones.
About the photo: Russian's army tanks move down a street on the outskirts of Mariupol, Ukraine, Friday, March 11, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Olexandr Chornyi, File
Moscow announces the withdrawal of forces from Kyiv and other areas March 29, saying it will focus on the eastern industrial heartland of the Donbas, where Russia-backed separatists have fought Ukrainian forces since 2014 following the illegal annexation of Crimea.
About the photo: People with Ukrainian flags walk toward Russian army trucks during a rally against the Russian occupation in Kherson, Ukraine, on March 20, 2022. As Russian forces sought to tighten their hold on Melitopol, hundreds of residents took to the streets to demand the mayor's release.
AP Photo/Olexandr Chornyi, FileMoscow announces the withdrawal of forces from Kyiv and other areas March 29, saying it will focus on the eastern industrial heartland of the Donbas, where Russia-backed separatists have fought Ukrainian forces since 2014 following the illegal annexation of Crimea.
About the photo: People with Ukrainian flags walk toward Russian army trucks during a rally against the Russian occupation in Kherson, Ukraine, on March 20, 2022. As Russian forces sought to tighten their hold on Melitopol, hundreds of residents took to the streets to demand the mayor's release.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Rodrigo Abd, File
The Russian pullback from Kyiv reveals hundreds of bodies of civilians in mass graves or left in the streets of the town of Bucha, many of them bearing signs of torture in scenes that prompt world leaders to say Russia should be held accountable for possible war crimes.
About the photo: Police work to identify civilians who were killed during the Russian occupation in Bucha, Ukraine, on the outskirts of Kyiv, before sending the bodies to the morgue, Wednesday, April 6, 2022.
AP Photo/Rodrigo Abd, FileThe Russian pullback from Kyiv reveals hundreds of bodies of civilians in mass graves or left in the streets of the town of Bucha, many of them bearing signs of torture in scenes that prompt world leaders to say Russia should be held accountable for possible war crimes.
About the photo: Police work to identify civilians who were killed during the Russian occupation in Bucha, Ukraine, on the outskirts of Kyiv, before sending the bodies to the morgue, Wednesday, April 6, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Andriy Andriyenko, File
On April 9, a Russian missile strike on a train station in the eastern city of Kramatorsk kills 52 civilians and wounds over 100.
Intense battles rage for the strategic port of Mariupol on the Sea of Azov, and Russian air strikes and artillery bombardment reduce much of it to ruins.
About the photo: People board buses during their evacuation, with a Soviet MiG-17 fighter jet monument in the background, in Kramatorsk, Ukraine, Saturday, April 9, 2022. After the bombing of the train station, residents continued their attempts to leave the city on buses and other transports.
AP Photo/Andriy Andriyenko, FileOn April 9, a Russian missile strike on a train station in the eastern city of Kramatorsk kills 52 civilians and wounds over 100.
Intense battles rage for the strategic port of Mariupol on the Sea of Azov, and Russian air strikes and artillery bombardment reduce much of it to ruins.
About the photo: People board buses during their evacuation, with a Soviet MiG-17 fighter jet monument in the background, in Kramatorsk, Ukraine, Saturday, April 9, 2022. After the bombing of the train station, residents continued their attempts to leave the city on buses and other transports.
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From tents to tanks; a big year in Ukraine for NATO alliesAP file
On April 13, the missile cruiser Moskva, the flagship of the Russian Black Sea Fleet, is hit by Ukrainian missiles and sinks the next day, damaging national pride.
About the photo: The Russian missile cruiser Moskva, the flagship of Russia's Black Sea Fleet is seen anchored in the Black Sea port of Sevastopol, on Sept. 11, 2008.
AP fileOn April 13, the missile cruiser Moskva, the flagship of the Russian Black Sea Fleet, is hit by Ukrainian missiles and sinks the next day, damaging national pride.
About the photo: The Russian missile cruiser Moskva, the flagship of Russia's Black Sea Fleet is seen anchored in the Black Sea port of Sevastopol, on Sept. 11, 2008.
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From tents to tanks; a big year in Ukraine for NATO alliesDmytro Kozatski/Azov Special Forces Regiment of the Ukrainian National Guard Press Office via AP, File
On May 16, Ukrainian defenders of the giant Azovstal steel mill, the last remaining Ukrainian stronghold in Mariupol, agree to surrender to Russian forces after a nearly three-month siege. Mariupol's fall cuts Ukraine off from the Azov coast and secures a land corridor from the Russian border to Crimea.
About this photo: In this photo provided by Azov Special Forces Regiment of the Ukrainian National Guard Press Office, a Ukrainian soldier stands inside the ruined Azovstal steel plant prior to surrender to the Russian forces in Mariupol, Ukraine, May 16, 2022.
Dmytro Kozatski/Azov Special Forces Regiment of the Ukrainian National Guard Press Office via AP, FileOn May 16, Ukrainian defenders of the giant Azovstal steel mill, the last remaining Ukrainian stronghold in Mariupol, agree to surrender to Russian forces after a nearly three-month siege. Mariupol's fall cuts Ukraine off from the Azov coast and secures a land corridor from the Russian border to Crimea.
About this photo: In this photo provided by Azov Special Forces Regiment of the Ukrainian National Guard Press Office, a Ukrainian soldier stands inside the ruined Azovstal steel plant prior to surrender to the Russian forces in Mariupol, Ukraine, May 16, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesJohanna Geron, Pool via AP, file
On May 18, Finland and Sweden submit their applications to join NATO in a major blow to Moscow over the expansion of the military alliance.
About the photo: NATO Secretary-General Jens Stoltenberg displays documents as Sweden and Finland applied for membership in Brussels, Belgium, May 18, 2022.
Johanna Geron, Pool via AP, fileOn May 18, Finland and Sweden submit their applications to join NATO in a major blow to Moscow over the expansion of the military alliance.
About the photo: NATO Secretary-General Jens Stoltenberg displays documents as Sweden and Finland applied for membership in Brussels, Belgium, May 18, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Efrem Lukatsky, File
More Western weapons flow into Ukraine, including U.S.-supplied HIMARS multiple rocket launchers.
About the photo: Ukrainian soldiers fire at Russian positions from a U.S.-supplied M777 howitzer in Ukraine's eastern Donetsk region June 18, 2022.
AP Photo/Efrem Lukatsky, FileMore Western weapons flow into Ukraine, including U.S.-supplied HIMARS multiple rocket launchers.
About the photo: Ukrainian soldiers fire at Russian positions from a U.S.-supplied M777 howitzer in Ukraine's eastern Donetsk region June 18, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesUkrainian Defence Ministry Press Office via AP, File
On June 30, Russian troops pull back from Snake Island, located off the Black Sea port of Odesa and seized in the opening days of the invasion.
About the photo: In this photo provided by the Ukrainian Defense Ministry Press Office on Thursday, July 7, 2022, Ukrainian soldiers install the state flag on Snake island, in the Black Sea.
Ukrainian Defence Ministry Press Office via AP, FileOn June 30, Russian troops pull back from Snake Island, located off the Black Sea port of Odesa and seized in the opening days of the invasion.
About the photo: In this photo provided by the Ukrainian Defense Ministry Press Office on Thursday, July 7, 2022, Ukrainian soldiers install the state flag on Snake island, in the Black Sea.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Khalil Hamra, File
On July 22, Russia and Ukraine, with mediation by Turkey and the United Nations, agree on a deal to unblock supplies of grain stuck in Ukraine's Black Sea ports, ending a standoff that threatened global food security.
About the photo: Turkish President Recep Tayyip Erdogan, right, and U.N. Secretary General, Antonio Guterres, sit as Sergei Shoigu, Russia's Defense Minister, and Hulusi Akar, Turkey's Defense Minister, shake hands during a signing ceremony at Dolmabahce Palace in Istanbul, Turkey, July 22, 2022.
AP Photo/Khalil Hamra, FileOn July 22, Russia and Ukraine, with mediation by Turkey and the United Nations, agree on a deal to unblock supplies of grain stuck in Ukraine's Black Sea ports, ending a standoff that threatened global food security.
About the photo: Turkish President Recep Tayyip Erdogan, right, and U.N. Secretary General, Antonio Guterres, sit as Sergei Shoigu, Russia's Defense Minister, and Hulusi Akar, Turkey's Defense Minister, shake hands during a signing ceremony at Dolmabahce Palace in Istanbul, Turkey, July 22, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP file
On July 29, a missile strike hits a prison in the Russia-controlled eastern town of Olenivka where Ukrainian soldiers captured in Mariupol were held, killing at least 53. Ukraine and Russia trade blame for the attack.
About the photo: In this photo taken from video a view of a destroyed barrack at a prison in Olenivka, in an area controlled by Russian-backed separatist forces, eastern Ukraine, Friday, July 29, 2022.
AP fileOn July 29, a missile strike hits a prison in the Russia-controlled eastern town of Olenivka where Ukrainian soldiers captured in Mariupol were held, killing at least 53. Ukraine and Russia trade blame for the attack.
About the photo: In this photo taken from video a view of a destroyed barrack at a prison in Olenivka, in an area controlled by Russian-backed separatist forces, eastern Ukraine, Friday, July 29, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesUGC via AP, File
On Aug. 9, powerful explosions strike an air base in Crimea. More blasts hit a power substation and ammunition depots there a week later. signaling the vulnerability of the Moscow-annexed Black Sea peninsula that Russia has used as a major supply hub for the war. Ukraine's top military officer later acknowledges that the attacks on Crimea were launched by Kyiv's forces.
About the photo: Rising smoke can be seen from the beach at Saky after explosions were heard from the direction of a Russian military airbase near Novofedorivka, Crimea, Aug. 9, 2022.
UGC via AP, FileOn Aug. 9, powerful explosions strike an air base in Crimea. More blasts hit a power substation and ammunition depots there a week later. signaling the vulnerability of the Moscow-annexed Black Sea peninsula that Russia has used as a major supply hub for the war. Ukraine's top military officer later acknowledges that the attacks on Crimea were launched by Kyiv's forces.
About the photo: Rising smoke can be seen from the beach at Saky after explosions were heard from the direction of a Russian military airbase near Novofedorivka, Crimea, Aug. 9, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Dmitry Serebryakov, File
On Aug. 20, Darya Dugina, the daughter of Russian nationalist ideologist Alexander Dugin, dies in a car bomb explosion outside Moscow that the Russian authorities blame on Ukraine.
About the photo: Philosopher Alexander Dugin speaks during the final farewell ceremony for his daughter Daria Dugina in Moscow, Russia, Tuesday, Aug. 23, 2022.
AP Photo/Dmitry Serebryakov, FileOn Aug. 20, Darya Dugina, the daughter of Russian nationalist ideologist Alexander Dugin, dies in a car bomb explosion outside Moscow that the Russian authorities blame on Ukraine.
About the photo: Philosopher Alexander Dugin speaks during the final farewell ceremony for his daughter Daria Dugina in Moscow, Russia, Tuesday, Aug. 23, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Leo Correa, File
On Sept. 6, the Ukrainian forces launch a surprise counteroffensive in the northeastern Kharkiv region, quickly forcing Russia to pull back from broad areas held for months.
About the photo: A Ukrainian national guard serviceman stands atop a destroyed Russian tank in an area near the border with Russia, in Kharkiv region, Ukraine, Sept. 19, 2022.
AP Photo/Leo Correa, FileOn Sept. 6, the Ukrainian forces launch a surprise counteroffensive in the northeastern Kharkiv region, quickly forcing Russia to pull back from broad areas held for months.
About the photo: A Ukrainian national guard serviceman stands atop a destroyed Russian tank in an area near the border with Russia, in Kharkiv region, Ukraine, Sept. 19, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Alexander Zemlianichenko, File
On Sept. 21, Putin orders mobilization of 300,000 reservists, an unpopular move that prompts hundreds of thousands of Russian men to flee to neighboring countries to avoid recruitment. At the same time, Russia hastily stages illegal "referendums" in Ukraine's Donetsk, Luhansk, Kherson and Zaporizhzhia regions on whether to become part of Russia. The votes are widely dismissed as a sham by Ukraine and the West.
About the photo: Riot police block a street during a protest against mobilization in Moscow, Russia, Wednesday, Sept. 21, 2022.
AP Photo/Alexander Zemlianichenko, FileOn Sept. 21, Putin orders mobilization of 300,000 reservists, an unpopular move that prompts hundreds of thousands of Russian men to flee to neighboring countries to avoid recruitment. At the same time, Russia hastily stages illegal "referendums" in Ukraine's Donetsk, Luhansk, Kherson and Zaporizhzhia regions on whether to become part of Russia. The votes are widely dismissed as a sham by Ukraine and the West.
About the photo: Riot police block a street during a protest against mobilization in Moscow, Russia, Wednesday, Sept. 21, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesDmitry Astakhov, Sputnik, Government Pool Photo via AP, File
On Sept. 30, Putin signs documents to annex the four regions at a Kremlin ceremony.
About the photo: From left, Moscow-appointed head of Kherson Region Vladimir Saldo, Moscow-appointed head of Zaporizhzhia region Yevgeny Balitsky, Russian President Vladimir Putin, Denis Pushilin, leader of self-proclaimed of the Donetsk People's Republic and Leonid Pasechnik, leader of self-proclaimed Luhansk People's Republic pose for a photo during a ceremony to sign the treaties for four regions of Ukraine to join Russia, at the Kremlin in Moscow, Friday, Sept. 30, 2022.
Dmitry Astakhov, Sputnik, Government Pool Photo via AP, FileOn Sept. 30, Putin signs documents to annex the four regions at a Kremlin ceremony.
About the photo: From left, Moscow-appointed head of Kherson Region Vladimir Saldo, Moscow-appointed head of Zaporizhzhia region Yevgeny Balitsky, Russian President Vladimir Putin, Denis Pushilin, leader of self-proclaimed of the Donetsk People's Republic and Leonid Pasechnik, leader of self-proclaimed Luhansk People's Republic pose for a photo during a ceremony to sign the treaties for four regions of Ukraine to join Russia, at the Kremlin in Moscow, Friday, Sept. 30, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP file
On Oct. 8, a truck laden with explosives blows up on the bridge linking Crimea to Russia's mainland in an attack that Putin blames on Ukraine. Russia responds with missile strikes on Ukraine's power plants and other key infrastructure.
After the first wave of attacks on Oct. 10, the barrage continues on a regular basis in the months that follow, resulting in blackouts and power rationing across the country.
About the photo: Flame and smoke rise from the Crimean Bridge connecting Russian mainland and the Crimean peninsula over the Kerch Strait, in Kerch, Crimea, Oct. 8, 2022.
AP fileOn Oct. 8, a truck laden with explosives blows up on the bridge linking Crimea to Russia's mainland in an attack that Putin blames on Ukraine. Russia responds with missile strikes on Ukraine's power plants and other key infrastructure.
After the first wave of attacks on Oct. 10, the barrage continues on a regular basis in the months that follow, resulting in blackouts and power rationing across the country.
About the photo: Flame and smoke rise from the Crimean Bridge connecting Russian mainland and the Crimean peninsula over the Kerch Strait, in Kerch, Crimea, Oct. 8, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Leo Correa, File
On Nov. 9, Russia announces a pullback from the city of Kherson under a Ukrainian counteroffensive, abandoning the only regional center Moscow captured, in a humiliating retreat for the Kremlin.
About the photo: Ukrainian servicemen check the trenches dug by Russian soldiers in a retaken area in Kherson region, Ukraine, Wednesday, Oct. 12, 2022.
AP Photo/Leo Correa, FileOn Nov. 9, Russia announces a pullback from the city of Kherson under a Ukrainian counteroffensive, abandoning the only regional center Moscow captured, in a humiliating retreat for the Kremlin.
About the photo: Ukrainian servicemen check the trenches dug by Russian soldiers in a retaken area in Kherson region, Ukraine, Wednesday, Oct. 12, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Libkos, File
On Dec. 5, the Russian military says Ukraine used drones to target two bases for long-range bombers deep inside Russian territory. Another strike takes places later in the month, underlining Ukraine's readiness to up the ante and revealing gaps in Russian defenses.
About the photo: Ukrainian soldiers watch a drone feed from an underground command center in Bakhmut, Donetsk region, Ukraine, Sunday, Dec. 25, 2022.
AP Photo/Libkos, FileOn Dec. 5, the Russian military says Ukraine used drones to target two bases for long-range bombers deep inside Russian territory. Another strike takes places later in the month, underlining Ukraine's readiness to up the ante and revealing gaps in Russian defenses.
About the photo: Ukrainian soldiers watch a drone feed from an underground command center in Bakhmut, Donetsk region, Ukraine, Sunday, Dec. 25, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Jacquelyn Martin, File
On Dec. 21, Zelenskyy visits the United States on his first trip abroad since the war began, meeting with President Joe Biden to secure Patriot air defense missile systems and other weapons and addressing Congress.
About the photo: Vice President Kamala Harris and House Speaker Nancy Pelosi of Calif., right, react as Ukrainian President Volodymyr Zelenskyy presents lawmakers with a Ukrainian flag autographed by front-line troops in Bakhmut, in Ukraine's contested Donetsk province, as he addresses a joint meeting of Congress on Capitol Hill in Washington, Wednesday, Dec. 21, 2022.
AP Photo/Jacquelyn Martin, FileOn Dec. 21, Zelenskyy visits the United States on his first trip abroad since the war began, meeting with President Joe Biden to secure Patriot air defense missile systems and other weapons and addressing Congress.
About the photo: Vice President Kamala Harris and House Speaker Nancy Pelosi of Calif., right, react as Ukrainian President Volodymyr Zelenskyy presents lawmakers with a Ukrainian flag autographed by front-line troops in Bakhmut, in Ukraine's contested Donetsk province, as he addresses a joint meeting of Congress on Capitol Hill in Washington, Wednesday, Dec. 21, 2022.
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From tents to tanks; a big year in Ukraine for NATO alliesAP file
On Jan. 1, just moments into the New Year, scores of freshly mobilized Russian soldiers are killed by a Ukrainian missile strike on the city of Makiivka. Russia's Defense Ministry says 89 troops were killed, while Ukrainian officials put the death toll in the hundreds.
About the photo: Workers clean rubbles after Ukrainian rocket strike in Makiivka, in Russian-controlled Donetsk region, eastern Ukraine, Tuesday, Jan. 3, 2023.
AP fileOn Jan. 1, just moments into the New Year, scores of freshly mobilized Russian soldiers are killed by a Ukrainian missile strike on the city of Makiivka. Russia's Defense Ministry says 89 troops were killed, while Ukrainian officials put the death toll in the hundreds.
About the photo: Workers clean rubbles after Ukrainian rocket strike in Makiivka, in Russian-controlled Donetsk region, eastern Ukraine, Tuesday, Jan. 3, 2023.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Evgeniy Maloletka, File
After months of ferocious fighting, Russia declares the capture of the salt-mining town of Soledar on Jan. 12, although Kyiv does not acknowledge it until days later. Moscow also presses its offensive to seize the Ukrainian stronghold of Bakhmut.
About the photo: Ukrainian servicemen fire a 120mm mortar towards Russian positions at the frontline near Bakhmut, Donetsk region, Ukraine, Wednesday, Jan. 11, 2023.
AP Photo/Evgeniy Maloletka, FileAfter months of ferocious fighting, Russia declares the capture of the salt-mining town of Soledar on Jan. 12, although Kyiv does not acknowledge it until days later. Moscow also presses its offensive to seize the Ukrainian stronghold of Bakhmut.
About the photo: Ukrainian servicemen fire a 120mm mortar towards Russian positions at the frontline near Bakhmut, Donetsk region, Ukraine, Wednesday, Jan. 11, 2023.
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From tents to tanks; a big year in Ukraine for NATO alliesAP Photo/Evgeniy Maloletka, File
On Jan. 14, when Russia launches another wave of strikes on Ukraine's energy facilities, a Russian missile hits an apartment building in the city of Dnipro, killing 45.
About the photo: Emergency workers clear the rubble after a Russian rocket hit a multistory building leaving many people under debris in the southeastern city of Dnipro, Ukraine, Saturday, Jan. 14, 2023.
AP Photo/Evgeniy Maloletka, FileOn Jan. 14, when Russia launches another wave of strikes on Ukraine's energy facilities, a Russian missile hits an apartment building in the city of Dnipro, killing 45.
About the photo: Emergency workers clear the rubble after a Russian rocket hit a multistory building leaving many people under debris in the southeastern city of Dnipro, Ukraine, Saturday, Jan. 14, 2023.
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Wall Street falls on new bank fears; bond yields plungeAlexander Zemlianichenko
FILE - People are seen through a window inside a restaurant at Patriarshiye Prudy with the word on the wall reads "Patriki" which means Patriarch's Ponds, a hip restaurants and bars district in Moscow, Russia, on Feb. 10, 2023. Russia has weathered sweeping Western economic sanctions better than many expected. Economic life for everyday Russians hasn't changed that much, with familiar imported goods either still available or replaced by local knockoffs. (AP Photo/Alexander Zemlianichenko, File)
Alexander ZemlianichenkoFILE - People are seen through a window inside a restaurant at Patriarshiye Prudy with the word on the wall reads "Patriki" which means Patriarch's Ponds, a hip restaurants and bars district in Moscow, Russia, on Feb. 10, 2023. Russia has weathered sweeping Western economic sanctions better than many expected. Economic life for everyday Russians hasn't changed that much, with familiar imported goods either still available or replaced by local knockoffs. (AP Photo/Alexander Zemlianichenko, File)
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Wall Street falls on new bank fears; bond yields plungeSTR
FILE - The tanker Sun Arrows loads its cargo of liquefied natural gas from the Sakhalin-2 project in the port of Prigorodnoye, Russia, on Oct. 29, 2021. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo, File)
STRFILE - The tanker Sun Arrows loads its cargo of liquefied natural gas from the Sakhalin-2 project in the port of Prigorodnoye, Russia, on Oct. 29, 2021. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo, File)
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Wall Street falls on new bank fears; bond yields plungeSTF
FILE - A view of the business tower Lakhta Centre, the headquarters of Russian gas monopoly Gazprom in St. Petersburg, Russia, on April 27, 2022. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo, File)
STFFILE - A view of the business tower Lakhta Centre, the headquarters of Russian gas monopoly Gazprom in St. Petersburg, Russia, on April 27, 2022. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo, File)
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Wall Street falls on new bank fears; bond yields plungeSTR
FILE - An oil tanker is moored at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia, on Oct. 11, 2022, one of the largest facilities for oil and petroleum products in southern Russia. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. (AP Photo, File)
STRFILE - An oil tanker is moored at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia, on Oct. 11, 2022, one of the largest facilities for oil and petroleum products in southern Russia. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. (AP Photo, File)
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Wall Street falls on new bank fears; bond yields plungeIvan Sekretarev
FILE - Russian state-run Sberbank headquarters in downtown Moscow, Russia on July 29, 2014. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo/Ivan Sekretarev, File)
Ivan SekretarevFILE - Russian state-run Sberbank headquarters in downtown Moscow, Russia on July 29, 2014. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo/Ivan Sekretarev, File)
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Wall Street falls on new bank fears; bond yields plungeAlexander Zemlianichenko
FILE - People line up to visit a newly opened restaurant in a former McDonald's outlet in Bolshaya Bronnaya Street in Moscow, Russia, on Jan. 25, 2023. Crowds might have thinned at some Moscow malls, but not drastically. Some foreign companies like McDonald's and Starbucks have been taken over by local owners who slapped different names on essentially the same menu. (AP Photo/Alexander Zemlianichenko, File)
Alexander ZemlianichenkoFILE - People line up to visit a newly opened restaurant in a former McDonald's outlet in Bolshaya Bronnaya Street in Moscow, Russia, on Jan. 25, 2023. Crowds might have thinned at some Moscow malls, but not drastically. Some foreign companies like McDonald's and Starbucks have been taken over by local owners who slapped different names on essentially the same menu. (AP Photo/Alexander Zemlianichenko, File)
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Wall Street falls on new bank fears; bond yields plungeSTR
FILE - People wait in a line to pay for her purchases at the IKEA store on the outskirts of Moscow, Russia, on March 3, 2022. Furniture and home goods remaining after IKEA exited Russia are being sold off on the Yandex website. (AP Photo, File)
STRFILE - People wait in a line to pay for her purchases at the IKEA store on the outskirts of Moscow, Russia, on March 3, 2022. Furniture and home goods remaining after IKEA exited Russia are being sold off on the Yandex website. (AP Photo, File)
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Wall Street falls on new bank fears; bond yields plungeSergey Guneyev
FILE - Russian President Vladimir Putin gestures while speaking at a news conference following a meeting of the State Council at the Kremlin in Moscow, Russia on Dec. 22, 2022. Russia's economy has weathered the West's unprecedented economic sanctions far better than expected. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (Sergey Guneyev, Sputnik, Kremlin Pool Photo via AP, File)
Sergey GuneyevFILE - Russian President Vladimir Putin gestures while speaking at a news conference following a meeting of the State Council at the Kremlin in Moscow, Russia on Dec. 22, 2022. Russia's economy has weathered the West's unprecedented economic sanctions far better than expected. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (Sergey Guneyev, Sputnik, Kremlin Pool Photo via AP, File)
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Wall Street falls on new bank fears; bond yields plungeEkaterina Shtukina
FILE - Deputy Chairman of the Russian Security Council Dmitry Medvedev, second left, accompanied by Russian Presidential Envoy to Ural Federal District Vladimir Yakushev, left, visits the Uralvagonzavod factory in Nizhny Tagil in Nizhny Tagil, Russia, on Oct. 24, 2022. Russia has weathered sweeping Western economic sanctions better than many expected. (Ekaterina Shtukina, Sputnik, Government Pool Photo via AP, File)
Ekaterina ShtukinaFILE - Deputy Chairman of the Russian Security Council Dmitry Medvedev, second left, accompanied by Russian Presidential Envoy to Ural Federal District Vladimir Yakushev, left, visits the Uralvagonzavod factory in Nizhny Tagil in Nizhny Tagil, Russia, on Oct. 24, 2022. Russia has weathered sweeping Western economic sanctions better than many expected. (Ekaterina Shtukina, Sputnik, Government Pool Photo via AP, File)
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Wall Street falls on new bank fears; bond yields plungeAlexander Zemlianichenko
A view of the Audi Center Altufievo one of 36 dealerships of Avtodom in Moscow, St. Petersburg and Krasnodar, in Moscow, Russia, Friday, March 10, 2023. The auto industry is facing bigger hurdles to adapt. Western automakers, including Volkswagen and Mercedes-Benz, have left Russia. Foreign cars are still available but far fewer of them and for higher prices, said Andrei Olkhovsky, CEO of Avtodom, which has 36 dealerships in Moscow, St. Petersburg and Krasnodar. (AP Photo/Alexander Zemlianichenko)
Alexander ZemlianichenkoA view of the Audi Center Altufievo one of 36 dealerships of Avtodom in Moscow, St. Petersburg and Krasnodar, in Moscow, Russia, Friday, March 10, 2023. The auto industry is facing bigger hurdles to adapt. Western automakers, including Volkswagen and Mercedes-Benz, have left Russia. Foreign cars are still available but far fewer of them and for higher prices, said Andrei Olkhovsky, CEO of Avtodom, which has 36 dealerships in Moscow, St. Petersburg and Krasnodar. (AP Photo/Alexander Zemlianichenko)
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Wall Street falls on new bank fears; bond yields plungeSTR
People walk past a Sviaznoy mobile phone shop in a shopping mall in St. Petersburg, Russia, Friday, March 10, 2023. Apple has stopped selling products in Russia, but Wildberries, the country's biggest online retailer, offers the iPhone 14 for about the same price as in Europe. Online retailer Svaznoy lists Apple AirPods Pro. (AP Photo)
STRPeople walk past a Sviaznoy mobile phone shop in a shopping mall in St. Petersburg, Russia, Friday, March 10, 2023. Apple has stopped selling products in Russia, but Wildberries, the country's biggest online retailer, offers the iPhone 14 for about the same price as in Europe. Online retailer Svaznoy lists Apple AirPods Pro. (AP Photo)
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Wall Street falls on new bank fears; bond yields plungeAlexander Zemlianichenko
FILE - Few visitors pass inside the GUM department store with lots of boutiques closed due to sanctions in Moscow, Russia, on June 1, 2022. U.S. officials say Russia is now the most sanctioned country in the world. But as the war nears its one-year mark, it's clear the sanctions didn't pack the instantaneous punch that many had hoped. (AP Photo/Alexander Zemlianichenko, File)
Alexander ZemlianichenkoFILE - Few visitors pass inside the GUM department store with lots of boutiques closed due to sanctions in Moscow, Russia, on June 1, 2022. U.S. officials say Russia is now the most sanctioned country in the world. But as the war nears its one-year mark, it's clear the sanctions didn't pack the instantaneous punch that many had hoped. (AP Photo/Alexander Zemlianichenko, File)
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Wall Street falls on new bank fears; bond yields plungeKirill Zykov
New made "Moskvich" cars are seen at the assembly shop of Moscow Automobile Plant "Moskvich" with the banner reads: "Moskvich (Muscovite) returns" in Moscow, Russia, Wednesday, Nov. 23, 2022. The auto industry is facing bigger hurdles to adapt. Russia launched production of the Moskvich car brand at a plant near Moscow given up by the French carmaker Renault, with a new, modern Chinese design that barely resembles the Soviet-era classic. (Kirill Zykov, Moscow News Agency via AP)
Kirill ZykovNew made "Moskvich" cars are seen at the assembly shop of Moscow Automobile Plant "Moskvich" with the banner reads: "Moskvich (Muscovite) returns" in Moscow, Russia, Wednesday, Nov. 23, 2022. The auto industry is facing bigger hurdles to adapt. Russia launched production of the Moskvich car brand at a plant near Moscow given up by the French carmaker Renault, with a new, modern Chinese design that barely resembles the Soviet-era classic. (Kirill Zykov, Moscow News Agency via AP)
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Wall Street falls on new bank fears; bond yields plungeIlya Pitalev
FILE - Employees of the Almaz-Antey Corporation's Obukhov Plant work at its assembly shop in St. Petersburg, Russia, on Jan. 18, 2023. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. The boon helped bolster the ruble after a temporary post-invasion crash and provided cash for government spending on pensions, salaries and — above all — the military. (Ilya Pitalev, Sputnik, Kremlin Pool Photo via AP, File)
Ilya PitalevFILE - Employees of the Almaz-Antey Corporation's Obukhov Plant work at its assembly shop in St. Petersburg, Russia, on Jan. 18, 2023. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. The boon helped bolster the ruble after a temporary post-invasion crash and provided cash for government spending on pensions, salaries and — above all — the military. (Ilya Pitalev, Sputnik, Kremlin Pool Photo via AP, File)
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Wall Street falls on new bank fears; bond yields plungeDmitry Serebryakov
A view of the Dealership Mercedes-Benz "Avilon" in Moscow, Russia, Saturday, March 11, 2023. The auto industry is facing bigger hurdles to adapt. Western automakers, including Volkswagen and Mercedes-Benz, have left Russia, but foreign cars are still available but far fewer of them and for higher prices. (AP Photo/Dmitry Serebryakov)
Dmitry SerebryakovA view of the Dealership Mercedes-Benz "Avilon" in Moscow, Russia, Saturday, March 11, 2023. The auto industry is facing bigger hurdles to adapt. Western automakers, including Volkswagen and Mercedes-Benz, have left Russia, but foreign cars are still available but far fewer of them and for higher prices. (AP Photo/Dmitry Serebryakov)
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Wall Street falls on new bank fears; bond yields plungeDmitri Lovetsky
FILE - Newly built nuclear-powered icebreaker Ural, third of five icebreakers of Project 22220, begins its passage from the Baltiysky Shipyard to the northern city of Murmansk, in St. Petersburg, Russia, on Nov. 23, 2022. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo/Dmitri Lovetsky, File)
Dmitri LovetskyFILE - Newly built nuclear-powered icebreaker Ural, third of five icebreakers of Project 22220, begins its passage from the Baltiysky Shipyard to the northern city of Murmansk, in St. Petersburg, Russia, on Nov. 23, 2022. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo/Dmitri Lovetsky, File)
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Wall Street falls on new bank fears; bond yields plungeAlexander Zemlianichenko
FILE - A logo of a newly opened Stars Coffee in the former location of a Starbucks in Moscow, Russia, on Jan. 24, 2023. Crowds might have thinned at some Moscow malls, but not drastically. Some foreign companies like McDonald's and Starbucks have been taken over by local owners who slapped different names on essentially the same menu. (AP Photo/Alexander Zemlianichenko, File)
Alexander ZemlianichenkoFILE - A logo of a newly opened Stars Coffee in the former location of a Starbucks in Moscow, Russia, on Jan. 24, 2023. Crowds might have thinned at some Moscow malls, but not drastically. Some foreign companies like McDonald's and Starbucks have been taken over by local owners who slapped different names on essentially the same menu. (AP Photo/Alexander Zemlianichenko, File)
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Wall Street falls on new bank fears; bond yields plungeSTR
FILE - New vehicles Gazelle are parked in the territory of the Gorky Automobile plant (GAZ), one of the main budget-forming enterprises in the region in Nizhny Novgorod, Russia, on Aug. 11, 2022. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo, File)
STRFILE - New vehicles Gazelle are parked in the territory of the Gorky Automobile plant (GAZ), one of the main budget-forming enterprises in the region in Nizhny Novgorod, Russia, on Aug. 11, 2022. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo, File)
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Wall Street falls on new bank fears; bond yields plungeAlexander Zemlianichenko
FILE - People line up to enter an H&M shop and buy items on sale in the Aviapark shopping mall in Moscow, Russia, on Aug. 9, 2022. Russians are snapping up While 191 foreign companies have left Russia and 1,169 are working to do so, some 1,223 are staying and 496 are taking a wait-and-see approach, according to a database compiled by the Kyiv School of Economics. (AP Photo/Alexander Zemlianichenko, File)
Alexander ZemlianichenkoFILE - People line up to enter an H&M shop and buy items on sale in the Aviapark shopping mall in Moscow, Russia, on Aug. 9, 2022. Russians are snapping up While 191 foreign companies have left Russia and 1,169 are working to do so, some 1,223 are staying and 496 are taking a wait-and-see approach, according to a database compiled by the Kyiv School of Economics. (AP Photo/Alexander Zemlianichenko, File)
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Wall Street falls on new bank fears; bond yields plungeDmitri Lovetsky
FILE - Men walk at the Nokian Tyres tire manufacturing plant in Vsevolozhsk, outside St. Petersburg, Russia, on June 29, 2022. Russia's economy has weathered the West's unprecedented economic sanctions far better than expected. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo/Dmitri Lovetsky, File)
Dmitri LovetskyFILE - Men walk at the Nokian Tyres tire manufacturing plant in Vsevolozhsk, outside St. Petersburg, Russia, on June 29, 2022. Russia's economy has weathered the West's unprecedented economic sanctions far better than expected. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo/Dmitri Lovetsky, File)
“It will have enough money under any kind of reasonable scenario,” Chris Weafer, CEO and Russian economy analyst at the consulting firm Macro-Advisory, said in a recent online discussion held by bne IntelliNews.
Russia will keep bringing in oil income, even at lower prices, so “there is no pressure on the Kremlin today to end this conflict because of economic pressures,” he said.
Associated Press
The tanker Sun Arrows loads its cargo of liquefied natural gas Oct. 29, 2021 in the port of Prigorodnoye, Russia.
As the economy teeters between sanctions and resilience, what everyday Russians can buy has stayed remarkably the same.
Apple has stopped selling products in Russia, but Wildberries, the country’s biggest online retailer, offers the iPhone 14 for about the same price as in Europe. Online retailer Svaznoy lists Apple AirPods Pro.
Furniture and home goods remaining after IKEA exited Russia are being sold off on the Yandex website. Nespresso coffee capsules have run short after Swiss-based Nestle stopped shipping them, but knockoffs are available.
Labels on cans of Budweiser and Leffe beer on sale in Moscow indicate they were brewed by ABInBev’s local partner — even though the company wrote off a stake in its Russian joint venture and put it up for sale. Coke bottled in Poland is still available; local “colas,” too.
ABInBev says it’s no longer getting money from the venture and that Leffe production has been halted. Wildberries and Svyaznoy didn’t answer emails asking about their sourcing.
But it’s clear goods are skirting sanctions through imports from third countries that aren’t penalizing Russia. For example, Armenia’s exports to Russia jumped 49% in the first half of 2022. Chinese smartphones and vehicles are increasingly available.
Alexander Zemlianichenko, Associated Press
A logo of a newly opened Stars Coffee in the former location of a Starbucks is pictured Jan. 24 in Moscow, Russia. Some foreign companies like Starbucks have seen locations taken over by local owners.
The auto industry is facing bigger hurdles to adapt. Western automakers, including Renault, Volkswagen and Mercedes-Benz, have halted production, with sales plunging 63% and local entities taking over some factories and bidding for others.
Foreign cars are still available but far fewer of them and for higher prices, said Andrei Olkhovsky, CEO of Avtodom, which has 36 dealerships in Moscow, St. Petersburg and Krasnodar.
Unlike European automakers, some corporations are far from bailing.
While 191 foreign companies have left Russia and 1,169 are working to do so, some 1,223 are staying and 496 are taking a wait-and-see approach, according to a database compiled by the Kyiv School of Economics.
One big reason for Russia’s resilience: record fossil fuel earnings of $325 billion last year as prices spiked. The surging costs stemmed from fears that the war would mean a severe loss of energy from the world’s third-largest oil producer.
That revenue, coupled with a collapse in what Russia could import because of sanctions, pushed the country into a record trade surplus — meaning what Russia earned from sales to other countries far outweighed its purchases abroad.
The boon helped bolster the ruble after a temporary post-invasion crash and provided cash for government spending on pensions, salaries and — above all — the military.
The Kremlin already had taken steps to sanctions-proof the economy after facing some penalties for annexing Ukraine’s Crimea peninsula in 2014. Companies began sourcing parts and food at home and the government built up huge piles of cash from selling oil and natural gas. About half of that money has been frozen, however, because it was held overseas.
Associated Press
People wait in line to pay for purchases at the IKEA store March 3, 2022, on the outskirts of Moscow, Russia. Furniture and home goods remaining after IKEA exited Russia are being sold on the Yandex website.
Those measures helped blunt predictions of a 11% to 15% collapse in economic output. The economy shrank 2.1% last year, Russia’s statistics agency said. The International Monetary Fund predicts 0.3% growth this year — not great, but hardly disastrous.
The big change could come from new energy penalties. The Group of Seven major democracies had avoided wide-ranging sanctions against Russian oil for fear of sending energy prices higher and fueling inflation.
The solution was a $60-per-barrel price cap on Russian oil heading to countries like China, India and Turkey, which took effect in December. Then came a similar cap and European embargo on Moscow’s diesel fuel and other refined oil products last month.
Categories: World News
