Effect of the sanctions
The U.S. sanctions against Russia targeted specific individuals, firms and sectors close to Putin. For example, they froze U.S.-held assets that belong to some major Russian companies and banks.
Experts had mixed opinions about the extent of the sanctions’ impact on Russia’s economy compared with other factors, notably falling oil prices.
Declining oil prices worldwide since 2012 are the primary reason for Russia’s economic woes given the country’s dependence on oil revenue and exports, said Susanne Wengle, a University of Notre Dame professor who studies Russia’s political economy.
The Russian government’s revenue is tied to oil prices, so a struggling oil industry significantly affects both the private and public sector, Wengle said. In its long-term budget projections, Russia assumed oil prices above $100 per barrel, but in 2016, prices sometimes dropped below $30.
If the sanctions weren’t in place, "the Russian economy would likely have struggled just as much," she said.
Beyond oil, Russia strained its budget by intervening in Crimea and depleting its reserves during the global financial crisis in 2008-09, said Sarah Wilson Sokhey, a University of Colorado, Boulder, professor who studies Russian politics and its economy.
Although Sokhey doesn’t think the sanctions have had a huge impact on the economy as a whole, she said certain individuals who do international business or who import certain products, especially foods, have taken a hit. For example, Russia banned importing European cheeses as a counter-sanction, so local cheesemakers had to make their own brie instead of getting it from France.
"It’s not a trivial thing," Sokhey said of the sanctions. "The Russian government would like to get rid of them, but it’s not something that is seriously hurting them or leading to widespread discontent."
Mitchell Orenstein, a University of Pennsylvania professor and expert on the political economy in Eastern Europe, said he believes sanctions have significantly impacted the Russian economy by massively limiting foreign investment in Russia. The sanctions exacerbate the oil crisis by limiting Russian access to technology and capital.
"Sanctions are certainly a big part of the economic decline in Russia, which explains why President Putin has made it such a high priority to get rid of sanctions," Orenstein said. "It makes it much less attractive for companies to do business in or with Russia."
The International Monetary Fund has said international sanctions and the oil price drop were "dual shocks" to the Russian economy. The organization estimated that all sanctions against Russia for its activity in Ukraine, as well as Russia’s own counter-sanctions, could reduce inflation-adjusted GDP by up to 1.5 percent.
For a more thorough rundown of economic analyses regarding the impact of sanctions on Russia, see this Feb. 17, 2017, report by the nonpartisan Congressional Research Service.
In an email, Tata told PolitiFact that he did not mean sanctions are the only cause of Russia’s economic problems. Rather, he was making a broader point that Putin is trying to shift eyes away from his country’s economic issues.
"Of course, there are other factors, but Putin despises the West in part because of the sanctions," he said.
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