The hit to Europe from an economic war with Russia over its invasion of Ukraine pales against the blow to Moscow — but another recession may still be the price to payA Lufthansa aircraft bringing Ukrainian refugees from Moldova to Germany arrives at Frankfurt Airport, following Russia's invasion of Ukraine, in Frankfurt, Germany, March 25 2022. REUTERS/THILO SCHMUELGEN
Some think it’s just an artificial way of propping the rouble via forced foreign demand, indirectly channelling hard cash back to a sanctioned central bank — the ultimate provider of roubles — and hoping to avert an inflationary collapse that’s already wiped off a third of the currency’s value this year.
“If you say to me Russian gas supplies are cut completely tomorrow, then definitely there will be a recession — not only this year but well into next,” she said. And this hit doesn’t even take account of the likely additional surge in gas and oil prices as a result — with European gas prices are already up more than 500% over the past year.
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