Sat. Feb 24th, 2024

On the battlefield, the military situation between Ukraine and Russia seems to be at a standstill. Western political support is faltering due to political dysfunction, and the war in the Middle East is drawing resources and attention away from Ukraine. Some are crediting Russian President Vladimir Putin as a “winner of the year,” but evidence shows that Russia has faced substantial costs as a result of the exodus of over 1,000 multinational companies. Economic data indicates that the Russian economy has suffered greatly from the loss of these businesses. Putin’s attempt to conceal Russia’s national income statistics indicates that there was nothing to be proud of. Numerous experts have reported on the negative economic impacts of the business exodus, including talent flight, capital flight, loss of Western technology and knowhow, and a near-complete halt in foreign direct investment into Russia. The exodus has also contributed to the loss of the ruble as a freely exchangeable currency and has cut off access to Western capital markets. The exodus of global businesses has led to substantial wealth destruction and plummeting asset valuations in Russia. These costs, combined with the impact of economic sanctions, have significantly weakened Putin’s war machine.

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