KSE Institute: Further Weakening of Russian Macroeconomic Stability Will Require Additional Measures

The KSE Institute has recently released its March Russia Chartbook titled “Further Weakening of Russian Macroeconomic Stability Will Require Additional Measures.” The chartbook examines Russia’s current economic landscape, highlighting key trends and challenges. Notably, Russia’s foreign trade has stabilized at a new post-sanctions baseline, characterized by reduced exports and a notable recovery in imports. Meanwhile, on the fiscal front, escalating expenditures are contributing to an uptick in the budget deficit.

As macroeconomic buffers continue to diminish, policymakers face increasingly limited maneuverability. The withdrawal of war-related fiscal stimulus is anticipated to unveil underlying vulnerabilities within the economy. Additionally, Russia’s shadow fleet is experiencing heightened scrutiny, with tanker designations by OFAC proving to be an effective strategy. Despite these developments, there remains a pressing need for further measures to undermine Russian macroeconomic stability and curtail its capacity for military engagement.

To read the whole of KSE Institute’s latest Russia Chartbook, visit the presentation by Benjamin Hilgenstock, Senior Economist, Yuliia Pavytska, Manager of the Sanctions Programme, and Vira Ivanchuk, Research Analyst.

To access the entire KSE Institute’s latest Russia Chartbook, download the presentation by Benjamin Hilgenstock, Senior Economist, Yuliia Pavytska, Manager of the Sanctions Programme, and Vira Ivanchuk, Research Analyst.