December 03, 2023

Occupation Is Expensive


Occupation Is Expensive
Rubles. The Russian Life files

The Bell, an independent Russian news outlet that focuses on economics, has released a study reporting that Russia's actions in Ukraine since the Maidan protests have created an economic "lost decade."

According to the report, since anti-Russian protests erupted in Kyiv in November 2013 (which would lead to Russia's annexation of Crimea, support for separatists, and eventual invasion), Russia has made policy decisions that have led to stunted economic growth.

These include a loan of R15 billion ($166 million) to the now-ousted Russia-friendly Ukrainian president, that is unlikely to be paid back; another $3 billion loan in Eurobond loans; and as much as R200 billion ($2.2 billion) in annual subsidies for occupied territories like Crimea. And this doesn't include an estimated R483 billion ($5.3 billion) annually for territories occupied since the most recent invasion began in February 2022.

And there is no indication these subsidies will end anytime soon.

Then there are the Western sanctions imposed in the wake of Russia's 2014 annexation of Crimea, followed by Russia's "counter-sanctions" – leading to a ban on Western food imports that nearly doubled food prices between 2014 and 2016, even as domestic production rose. Large Russian companies suffered as well, as they were unable to attract foreign investment, which slowed growth throughout the economy.

The combined economic effects of all of this are widespread. For instance, while other countries in Eurasia saw strong GDP growth over the period, ten years of slow growth in Russia has created a gap between Russia and the West five times larger than it was ten years ago, on top of higher prices for consumers.

The end result? Sluggish isolation for Russia.

You Might Also Like

We'll Swim After Victory
  • October 15, 2022

We'll Swim After Victory

Our correspondent was offered a business trip to Odesa, Ukraine. He took it and brought this back.
Trekking In Partisan Footsteps
  • May 01, 2011

Trekking In Partisan Footsteps

Eastern Crimea was a center for partisan activity during the Great Patriotic War. In honor of the May Day holiday, we trek through this wild realm along the Black Sea.
600 Days of War
  • October 16, 2023

600 Days of War

Russia's War on Ukraine has been going on for 600 days. Some Facts & Figures.
A Wall of Resistance
  • February 27, 2023

A Wall of Resistance

A Russian shopkeeper's picture went viral after using the walls of his shop to express opposition to the invasion of Ukraine.
Like this post? Get a weekly email digest + member-only deals

Some of our Books

Driving Down Russia's Spine
June 01, 2016

Driving Down Russia's Spine

The story of the epic Spine of Russia trip, intertwining fascinating subject profiles with digressions into historical and cultural themes relevant to understanding modern Russia. 

The Little Humpbacked Horse
November 03, 2014

The Little Humpbacked Horse

A beloved Russian classic about a resourceful Russian peasant, Vanya, and his miracle-working horse, who together undergo various trials, exploits and adventures at the whim of a laughable tsar, told in rich, narrative poetry.

At the Circus
January 01, 2013

At the Circus

This wonderful novella by Alexander Kuprin tells the story of the wrestler Arbuzov and his battle against a renowned American wrestler. Rich in detail and characterization, At the Circus brims with excitement and life. You can smell the sawdust in the big top, see the vivid and colorful characters, sense the tension build as Arbuzov readies to face off against the American.

Moscow and Muscovites
November 26, 2013

Moscow and Muscovites

Vladimir Gilyarovsky's classic portrait of the Russian capital is one of Russians’ most beloved books. Yet it has never before been translated into English. Until now! It is a spectactular verbal pastiche: conversation, from gutter gibberish to the drawing room; oratory, from illiterates to aristocrats; prose, from boilerplate to Tolstoy; poetry, from earthy humor to Pushkin. 

About Us

Russian Life is a publication of a 30-year-young, award-winning publishing house that creates a bimonthly magazine, books, maps, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955