Russia is Winning the Economic War, The Guardian

The Western countries will eventually have to negotiate with the Russian Federation, as the side effects of anti-Russian sanctions could lead the world into a series of crises, reported the British newspaper The Guardian.

As noted by the publication, "it is now difficult to reconcile with the idea of compromise with the Kremlin, but economic realities say one thing – sooner or later, negotiations with Russia will be unavoidable." The newspaper cites as a reason the fact that the economic war against the Russian Federation is not proceeding as planned and is associated with a number of side effects.

In particular, due to anti-Russian restrictions, developed countries are already facing economic decline, as well as the threat of "growing inflation and unemployment," writes The Guardian. Developing countries will soon feel a combination of fuel, food, and financial shocks, which is likely to lead to a series of defaults on obligations to Western creditors and a full-scale global debt crisis.

It is noteworthy, according to the newspaper, that during the discussions at the World Economic Forum in Davos, leaders of Western countries have already begun to express concerns about the economic consequences of the prolongation of the Ukraine conflict. At the same time, sanctions against the Russian Federation have led to a serious increase in energy resource prices, which has significantly boosted its positive trade balance, the newspaper points out.

It is mentioned that this, along with the Russian government's decision to restrict activity in the stock market, has seriously strengthened the ruble's exchange rate. The embargo on oil supplies from Russia to Europe, agreed upon by EU countries, will come into full force no sooner than six months after the adoption of the corresponding sanctions package. As The Guardian notes, this period is sufficient for Russian companies to successfully reorient towards alternative consumers.

In conclusion, the article summarizes that the Kremlin is right in considering that Russia's "economic pain threshold" is higher than that of the West.