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Russia's Economy Dips: Sanctions Spark Major Losses

9/25/2025

42 7 Full Breakdown

Summary

Story summary

The MOEX Russia Index fell below 2,800 amid intensified sanctions.
Gazprom posted a $7 billion loss in 2023, its first since 1999.
Russia's gas exports to the EU fell to 18% of imports in 2023.
The government proposed raising VAT to 22% to fund military expenditures amid sanctions and oil-revenue decline.

History

Historical Context

Russia's annexation of Crimea in 2014 triggered extensive sanctions from the U.S. and EU, severely affecting its economy. By 2023, Gazprom reported a $7 billion loss, its first deficit since 1999, as gas exports to the EU plummeted to 18% of imports. In response, the Russian government proposed raising VAT to 22% to bolster military funding amid declining oil revenues.

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Story summary

The MOEX Russia Index fell below 2,800 amid intensified sanctions.
Gazprom posted a $7 billion loss in 2023, its first since 1999.
Russia's gas exports to the EU fell to 18% of imports in 2023.
The government proposed raising VAT to 22% to fund military expenditures amid sanctions and oil-revenue decline.

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