Russia is in a deep economic crisis. Economist on the impact of sanctions on Russia

Over the weekend, the 18th package of European Union sanctions against the Russian Federation came into force. Its main element is the reduction of the ceiling price for Russian oil from $60 per barrel to $47.6 starting September 3, 2025. In addition, 22 Russian banks have been sanctioned, and for the first time the list includes two Chinese banks for providing cryptocurrency services, eight companies of the military-industrial complex of Belarus, and other individuals and legal entities.

Over the three and a half years of war, Ukrainians have lost some faith in the effectiveness of Western sanctions against the aggressor country. However, economic pressure from partners is gradually bringing results.

How significant is the cumulative effect of sanctions on the aggressor's economy? What is the real socio-economic situation in the Russian regions? Can the war end in a social explosion for Russia? What should be changed in the sanctions policy to speed up the end of the war? What will happen to the Russian economy in 2026 and will Ukraine withstand the economic burden? These questions were asked by LIGA.net to economist, former member of the National Bank Council Vitaliy Shapran, who has been researching trends in the Russian economy for several decades.