Crisis is coming: Russia’s GDP fell 4.3% due to the sanctions

According to a Russian Gazette’s report, the data released on June 30, local time, by the Russian Ministry of Economic Development shows that Russia’s GDP in May 2022 fell by 4.3% year-on-year, National Business Daily reported on the same day.

According to public data, Russia’s GDP in 2021 will be 1.77 trillion US dollars, with a growth rate of 4.5%. Energy exports dominated Russia’s economy. Energy exports to the EU increased more than double in the first quarter of 2022. Nowadays, 40% of the EU’s natural gas and 30% of its oil imports come from Russia. China has become Russia’s largest trading country, with bilateral trade reaching $140.7 billion in 2021, a year-on-year increase of 35.6%, accounting for nearly 18% of Russia’s foreign trade amount. Fuel and energy products account for 54.3% of Russia’s export structure. In the context of global inflation, the rapid rise in international commodity prices is the main reason for the fast recovery of the Russian economy.

Russia’s invasion of Ukraine has been sanctioned by many countries around the world, prohibiting the purchase of gold, the repayment of debts in Rubles, and the trade of oil and energy. The source of Russia’s funds has been severely cut off. The economic decline is unchangeable and the only one step away from bankruptcy.