is Russia “drowned in cash” despite the sanctions?

Jordan Bardella, MEP for the National Rally, believes that the sanctions taken against the Russian economy are not working. “We see that the energy sanctions taken against Russia are much more painful for the French people than for Russia. Russia is drowned in cash. The trade surplus has been multiplied by 2 and its hydrocarbon revenues have increased by 40%“, he thus declared on BFM TV September 4.

Both of these are true: Russia’s trade surplus is at record highs of over $70 billion in the second quarter, and energy export revenues have soared from a year ago. But these figures do not necessarily reflect the good health of the Russian economy. The trade surplus is especially strong because imports are plummeting. Other indicators are bad: GDP is down 6% according to the IMF, and even 8% according to the Russian Economy Ministry. The equivalent of 40% of economic activity left Russia after the sanctions, with 1,200 foreign companies leaving. It is therefore the activity linked to hydrocarbons that keeps the Russian economy afloat, which nevertheless remains more resilient than the predictions said.