Russia built an economy like a fortress but the pain is real

By The Associated Press

Sanctions are hitting Russia’s economy hard. The ruble is plunging, and major foreign companies are fleeing. There’s little question Russia will see a hit to economic growth, while ordinary people are going to see higher prices on top of already high inflation. Yet the longer-term prospects are uncertain, and forecasts vary because no one knows the outcome or fallout from its war in Ukraine. Failure to diversify away from a dominant oil and gas industry and crony capitalism have meant Russia is already an economic underperformer. But some economists think Russia will muddle through because it’s built a fortress-like economy based on oil and gas money, low debt and strong financial reserves.