Current Affairs Ukraine

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My position has never been that all of that is "small". It's that the central bank reserves issue is probably a lot more manageable than the trade implications, which are more of a medium and long-term problem.

With a little creativity, Putin can probably finagle a way out of the immediate problems the sanctions create. What will surely be a problem is the implications for government revenues via taxation that will result from a dip in the sale of oil and gas, and the potential inability of those employers to avoid massive layoffs on the production side.

What may also be a problem is difficulty in repairing existing equipment, and producing enough stuff to redirect oil and gas production to plug the hole in revenues. I don't have data that would address that question, and it's way too focused a question to Google. We would need a well-connected area specialist to give us that answer.

Connection to the international banking system won't much matter to most individuals in Russia, as long as alternatives to settling payment can be found. Oligarchs not under sanctions are functionally multinationals that will be inconvenienced. Export and import businesses, and those that depend upon them in order to function, are going to take a hit. The relevant question is how big that punch will be, and what Putin and his economic team have up their sleeves for dealing with it.
To give an example on how European farmers managed to wriggle out of the 2014 sanctions: Sell to an Egyptian intermediary and he sells it to the client in Russia. It costs more but you keep the market.
 
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