The sanctions imposed by the West after the Russian invasion of Ukraine, including the freezing of central bank reserves and the exodus of foreign companies, came as a surprise to President Vladimir Putin.
The risks facing the economy in 2022 “came largely unexpected,” Putin said Tuesday at a government meeting.
“We did not know and did not understand them, and, nevertheless, we went through them,” the president admitted, specifying what he meant by “financial, budgetary, structural and logistical” risks.
“We did a very decent job,” Putin praised himself and the ministers, adding that next year would be “better” in terms of risks to the economy.
According to X-Compliance, at the end of 2022, almost 3,000 companies and 4,800 Russian citizens were included in the sanctions lists – twice as many as a year earlier.
Among the Russian companies included in the sanctions lists, 11.2% are engaged in scientific research and development, 8.1% in wholesale trade, 6.5% in the provision of financial services, 4.3% in the production of computers, electronics and optics, 4, 2% – the production of vehicles and equipment.
At the end of 2022, Russian GDP fell by 2.5%, Putin said at a meeting with the cabinet. He stressed that the scale of the recession turned out to be much less than forecasts, some of which promised the country a 20% economic collapse.
Quarter by quarter, according to Putin, the economy has been growing since the summer: in the third quarter, GDP exceeded the values of the second, and in the fourth – the values of the third, seasonally adjusted.
The Ministry of Economic Development predicts that the economy will continue to shrink in 2023. And although the decline in GDP, according to the agency, will be only 0.8%, the two-year recession will be the first for Russia since the mid-1990s.