This is hands-down the best explanation I've heard on why sanctions on Russia backfired, and why they were never going to succeed in the first place.

X ^ | 3/10/24 | James K. Galbraith

[hardspunned]

Best quote of his explanation: "This is a situation in which the sanctions were imposed by one important sector of the world economy which then cut itself off from resources that it needs - and that's particularly true of Western Europe - in return for cutting Russia off from various things that Russia doesn't really need."

[hardspunned]

Second best quote: "If you go back to the period before the introduction of the sanctions [...] the Russian economy was very heavily colonized by Western firms. That was true in automobiles, it was true in aircrafts, it was true in everything from fast food restaurants to big box stores. Western firms were present all throughout the Russian economy. A great many of them [...] either chose to exit Russia or were pressured to exit Russia after early 2022. So on what terms did they leave? Well, they were required, if they were leaving permanently, to sell their capital equipment, their factories and so forth, to let's say a Russian business which would get a loan from Russian banks or maybe have other sources of financing, at a very favorable price for the Russians. So effectively a lot of capital wealth, which was partly owned by the West, has been transferred to Russian ownership. And you now have an economy which is moving forward and has the advantage compared to Europe of relatively low resource costs because Russia is a great producer of resources, oil and gas and fertilizer and food stuff and so forth. And so while the Europeans are paying maybe twice in Germany what they were paying for energy, the Russians are not, they're paying perhaps less than they were paying before the war. So again I characterize the effect of the sanctions, in fact as being in certain respects a gift to the Russian economy. And this is, I think, quite different from what the authors of the sanctions expected. [...] And the essence of the situation is this would not have happened without the sanctions. You could have had the war, and it would have gone pretty much as it has gone. But the Russian government in 2022 was in no position to force the exit of Western firms. It didn't want to, wouldn't have done that. It was in no position to force its oligarchs to choose between Russia and the West. It didn't wish to do that. These choices were imposed by the West, and the results were actually, in many respects, favorable to the long-term independent development of the Russian Federation's economy."

[Zathras]

The results of 20 years in Afghanistan should be enough.
The results of 20 years in Iraq if its NOT enough.
The CIA didn’t flip either of these countries.
Nor are they going to change Russia or Ukraine.

[AndyJackson]

But the Russians suffer from not having the kind of efficient administrative state and regulatory structure to ensure that the competence of the educated elite guides economic growth and development.

[Right_Wing_Madman]

This is hands-down the best explanation I've heard on why sanctions on Russia backfired

These days, there are too many economic participants outside US/Europe. Western leaders overplayed their hand.

[rhinohunter]

You Putin stooge!

/sarc

[AndyJackson]

The CIA ihas a great record for recruiting Russian dissidents who are actually KGB agents.

[USA-FRANCE]

Well a shorty that has another take on that... :
https://www.youtube.com/shorts/wzW2hgNpZuI

[wildcard_redneck]

Proof the everything globohomo leftist touch turns to crap and starts a disaster.

[Reverend Wright]

The Russians were able to buy businesses at fire sale prices, when they have lower operating, energy, electricity, regulatory and labor costs.

Western “leadership” and trying to penalize Russia’s business classed turn them against Putin. Instead they enriched them

Western goofball “leadership” thought that cutting off OnlyFans, ApplePay and McDonalds would bring Russia down to collapse.

No wonder the West is losing this war !

[wildcard_redneck]

"But the Russians suffer from not having the kind of efficient administrative state and regulatory structure to ensure that the competence of the educated elite guides economic growth and development."

Did you forget your sarcasm tag? If you really believe that the. you're part of the problem we face in America.

[BobL]

Yep, pretty much nails it.

I think the example of McDonald’s is probably the best. McDonald’s, for obvious cost reasons, not only opened up restaurants in Russia, they set up entire supply chains in Russia, right back to the farms that grew the grains and raised the livestock...obviously with something like 99% of the employees being Russian.

So when it was time for McDonald’s to leave, after a few months of changing signs and getting adjusted, the re-named McDonald’s was back in business, except without the having to send its profits to the US...same menu, different names for the food, but same food.

Finally, the new McDonald’s is doing so well that they are now opening new restaurants under their own name in Russia.

Incredible, just how much the ‘sanctions’ backfired.

[DoodleBob]

This is a situation in which the sanctions were imposed by one important sector of the world economy which then cut itself off from resources that it needs - and that's particularly true of Western Europe - in return for cutting Russia off from various things that Russia doesn't really need.

[MinorityRepublican]

Some Russian customers are complaining that Vkusno i tochka doesn’t taste quite like McDonald’s. The Russians are corrupt. But McDonald’s was a brand and everyone knows that they have a reputation to uphold.

[USA-FRANCE]

“Russia has burned through almost half of the liquid reserves in its national wealth fund as it bleeds money amid the war in Ukraine:

https://www.businessinsider.com/russia-economy-bleeding-money-liquid-reserves-national-wealth-fund-war-2024-1

[hardspunned]

The Russians bought the billions in assets the West abandoned. The West will steal $300 Billion from Russia. That money will have zero strings attached, zero accountability. Let the corrupt Western oligarchs’ good times roll.

[hardspunned]

Not for Russia.

[BobL]

“Russia has burned through almost half of the liquid reserves in its national wealth fund as it bleeds money amid the war in Ukraine:”

LOL, Business Insider!!!!

Good One!!!!

[hardspunned]

I hope you are being sarcastic and not really as hopelessly confused as old Tom looks there.

[AndyJackson]

I would not have thought a sarcasm tag was needed. I live in DC with these elites who can’t change their own lightbulbs and can’t understand how suddenly crime is exploding in their shining city on the hill.

[BobL]

“The West will steal $300 Billion from Russia. That money will have zero strings attached, zero accountability.”

Don’t fool yourself, the West will be HELD ACCOUNTABLE, and that can already be seen by the expanding BRICS, as well as the digital currency they’re developing to replace the US dollar for International Trade.

We can thank the Neocons for putting the last nail in the coffin for Western domination of the world - likely something that almost certainly would have happened over time, but now MUCH, MUCH, FASTER.