On June 2, the Valdai Club hosted an expert discussion, titled “The Russian Economy and the Onslaught of the West: What Will Be the Response to New Challenges?”
Since the start of the special military operation in Ukraine, Russia has faced an unprecedented amount of sanctions, mostly from Western countries. Measures have been taken to exclude Russia from the world's economic, financial and trading systems. According to Russian President Vladimir Putin, if Russia does not separate itself with a wall from the developed economies, then "no one will be able to cut off a country like Russia".
Although the target of sanctions is the Russian economy, they will have a tangible negative effect on the entire world economic system. World Bank President David Malpass noted that the sanctions will affect global GDP more than the situation in Ukraine itself. Inflationary processes are actively gaining momentum in the global economy, while their negative consequences for the stability of financial markets have been exacerbated by the measures taken by the US Federal Reserve to tighten US monetary policy and raise the key interest rate.
At the same time, the Russian economy, despite the escalation of geopolitical risks, has demonstrated the stability of the rouble exchange rate, which limits the impetus for the further acceleration of inflation. In the global economy, the structure of Russian foreign trade is actively changing in favour of Asia, while a growing number of Russian partners are switching to settlements in national currencies. Domestically, the Russian government is developing targeted support measures for citizens and key sectors of the economy, including high-tech areas such as the IT sector.
Against the backdrop of unprecedented challenges for the Russian economy in 2022, there is a need for the further reorientation of trade and investment flows, the formation of new economic alliances, and new measures to stimulate the economy.
How effective are the attempts of Western countries to exclude Russia from the world economic and trade system? What are the global implications? What will Russia's economic strategy be, and what measures will be taken to support employment and economic activity? Are there any prospects for the de-dollarisation of the world economy and the transfer of foreign trade settlements into national currencies?
- Leonid Grigoryev, Academic Supervisor of the Department of World Economy, Head of the Master's Programme in World Economy at FMEMP, Higher School of Economics
- Sergey Krasilnikov, Vice President, Managing Director of International Relations and Integration Directorate, The Russian Union of Industrialists and Entrepreneurs
- Natalia Stapran, Director of the Department for Multilateral Economic Cooperation and Special Projects, Ministry of Economic Development of the Russian Federation
Liu Zhiqin, Senior Research Fellow at the Chongyang Institute for Financial Studies at Renmin University of China (RDCY).
- Andrey Bystritskiy, Chairman of the Board of the Foundation for Development and Support of the Valdai Discussion Club.