Capital Economy, Business and Finance
Russia's economy continues to hum despite sanctions, growing at an annualised 5.4 per cent in Q2, up from 4 per cent in the first quarter of the year. It's well-known that any hit to the Kremlin's finances from western embargoes on Russian goods and energy is being more than compensated for by a forced end to capital flight and sharp rises in sanctions-busting by Russian neighbours acting as intermediaries. Less well known till now is just how well some of those neighbours are doing out of war on Ukraine. Ex-Soviet Central Asia's five “Stans” grew by 6 per cent in all last year, a third faster than in 2022, and Armenia by 8 per cent. Most of them resent an influx of Russian emigres since the 2022 invasion of Ukraine; none can afford to turn down their new role as middlemen.
