Russia’s decoupling from West looks to be long-term

Significance

This is Russia’s drastic response to most developed states’ economic sanctions following the invasion of Ukraine. It means a new geography of foreign trade that will not only shift Russia’s position in the world economy, but also influence global trade flows, changing the international economic environment for both emerging and developed nations.

Impacts

• Russia’s growing ties with large emerging economies will reduce the effect of Western sanctions.
• Sanctions’ effectiveness will influence the prospects for resolving the Ukraine conflict.
• OPEC+ cuts in oil output may support Russia if it raises global oil prices, but that depends on global demand.