Sanctions 'catastrophically crippling' Russian economy, study finds

Russia's economy has been "catastrophically crippled" by western sanctions and the mass exodus of international companies, according to a Yale University study.

The research -- which the authors say is the "first comprehensive" analysis of the Russian economy -- found that since the start of the Ukraine war, Russia has taken a devastating hit across multiple metrics. 

"Russia has lost companies representing ~40% of its GDP, reversing nearly all of three decades worth of foreign investment," write researchers at the Yale School of Management, adding that this situation has been worsened by an "unprecedented" capital and population flight. 

More than 1,000 companies have curtailed their operations in Russia or exited the country entirely since the start of the Ukraine war, across almost every industry from fashion to finance. 

Yale's research, which was published on 20 July, says the international sanctions have "irrevocably deteriorated" Russia's exports and that imports into the country have "largely collapsed." 

This has led to "widespread supply shortages" inside Russia and caused domestic production, which relies on imports across all industries, to grind to a halt.  

“Despite Putin’s delusions of self-sufficiency and import substitution, Russian domestic production has come to a complete standstill with no capacity to replace lost businesses, products and talent; the hollowing out of Russia’s domestic innovation and production base has led to soaring prices and consumer angst,” writes the Yale team. 

Russia's status as a leading commodity exporter has also been dealt a blow, according to researchers. 

“Russia’s strategic positioning as a commodities exporter has irrevocably deteriorated, as it now deals from a position of