Russian economy faces meltdown as sanctions ‘drive wedge’ between country’s only allies

RUSSIA-POLITICS

Western sanctions are dividing Russia and its trade partners. (Image: Getty)

only allies are finally turning on the country in the wake of economic sanctions from the West, a leaked government report revealed.

The bombshell report was presented at a strategy session led by Prime Minister Mikhail Mishustin and gives a grim insight into

The Financial Times reports that its analysis admitted that increasingly stringent sanctions are “driving a wedge” between and some of its “nearest trade partners.”

This is something that has been accused of hiding as he continues to paint a more positive picture of the war in ‘s economic impact.

Asian countries have complied with Western sanctions on after being allowed access to other global markets, transport corridors, and supply chains.

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RUSSIA-ECONOMY-SANCTIONS

The Russian ruble recently tanked to its worst levels since the Ukraine war broke out. (Image: Getty)

However, some countries have been able to circumvent and profit despite the sanctions by taking over their imports and exports. Other countries that do not comply with the sanctions have asked for a commission to cover the risks of violating them.

Central Asian countries were found to be taking advantage of ‘s “vulnerability” and trying to “integrate without ” in other groups.

The report said these countries must “make a decision on their stance towards ” as an increasing number of them sever ties, such as by no longer teaching Russian and adopting more Western educational standards.

Compounding the issue, the Eurasian Economic Union, led by and including Belarus, Armenia, Kazakhstan and Kyrgyzstan, is struggling with “systemic problems”, the report conceded.

The problems include sanctions, different payment systems, and Government regulations

[REPORT]

However, the report did present a solution to , claiming a new Eurasia trade bloc would be able to compete with the EU and US.

The report said the so-called “macroregion” would make a player in the “global arena” by connecting it to the global south for raw materials, finance, and transport services.

The regions would be connected by a common “world view [ . . .] where we write rules for the new world [and have] our own sanctions policy”.

It concluded that must “play the long game” to keep its allies in central Asia by appealing to their shared history.

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