Western sanctions are not destroying what might be called “Putin’s economy”, but rather the private companies that have managed to emerge in the Russian Federation over the past two decades and the Russian people, says Vladislav Inozemtsev. Instead, from the Kremlin’s perspective, they are bolstering Putin’s economy.
That’s not to say the West shouldn’t impose sanctions, says the Russian economist. They are an entirely justified response to what Moscow has done. But it’s important to understand that they don’t have the effect that many expect and won’t have anytime soon (kasparov.ru/material.php?id=62F0D28F9CE1D§ion_id=50A6C962A3D7C).
The reason for this conclusion, says Inozemtsev, stems from the fact that Putin’s economy is very different from a “normal” economy. Putin and his entourage have “de facto privatized the whole country and consider it their personal property, rely on state corporations, use the legal system to support them and profit from the sale of the country’s natural resources .
Moreover, he continues, they want Russia to turn away from the West and believe they can serve their own interests better by making Russia a “Chinese satellite”. If the Russian economy were normal, it would not have this status and would not be interested in pursuing such policies.
But once this difference is recognized, it is easy to see that, from the perspective of Putin and his team, what happened in the aftermath of the sanctions is “not a catastrophe”, but rather a series of disasters. events that led to the “strengthening and consolidation” of their position and a confirmation of their approach.
Since February 24eRussia and the West separated, Moscow divided all investors into friends and others, it trampled on the rights of foreign investors and even seized part of their property, and it was able to affect the economy as a whole so that until then he could only act for state companies.
Added to this list, according to Inozemtsev, are amendments to intellectual property and patent laws and allowing Russian companies to engage in illegal imports, all of which help the Kremlin and its “Putin economy” but hurt the Russian economy because such systems are generally and with justification understood.
Putin and his team cannot be unhappy that the main impact of the sanctions has been on private business and entrepreneurial culture, something the regime wants to exploit but fears will almost inevitably become a threat to its own special economy, he said. said the economist and the commentator said.
A measure of where sanctions have hit hardest is where qualified executives have emigrated from; and it is therefore not surprising that “the authorities say in all sincerity and with justice that [their departure] has no serious impact on the economy, at least as they understand it.