(PresidentialHill.com)- Russian economists, public figures, and government officials have consumed themselves trying to think of ways to get around the 1,194 sanctions imposed by the United States for attacking Ukraine.
Apart from lowering and raising interest rates and making it more difficult for Russian citizens to access foreign currencies, former Deputy Prime Minister Dmitry Rogozin – now the Director-General of Roscosmos – recently suggested that Russia could use quantitative easing to relieve the pressure on Russian citizens.
Rogozin had a brainstorm. He suggested in an interview with Russia 24TV that increasing the amount of money that Russia prints could help reduce the pressure brought on by Western sanctions.
The Roscomos chief said that Russia could release its own investment money. An equal amount of what has been locked and what is no longer working for their economy could be leveraged.
“I believe it is possible, and those in charge of our finances should seriously consider it,” Rogozin gushed.
He said Russia could simply print the money and then give it to their industries to invest in vigorous projects.
Rogozin also expressed frustration that Western sanctions, including a ban on exporting many Western-made technological components, were affecting the Russian space program. He proposed that the Kremlin respond to sanctions by printing at least 1 trillion rubles, or $15.9 billion.
Rogozin’s comments come as Russian citizens and businesses feel the pinch from Western governments’ efforts to circumvent sanctions.
Russia’s economy hasn’t collapsed under Western sanctions, but food prices are rising.
Moscow-based economist Tatiana Mikhailova said that grocery prices have risen in recent months, but people may think nothing is happening if they don’t watch TV.
Several indicators indicate a struggling economy. HeadHunter, an online recruitment company, reported a 28% drop in vacancies in April over February, while unemployment remained largely unchanged.
The Russian economy is on track for its worst recession since the fall of the Soviet Union, with a 15% drop in GDP expected this year. As the US and Europe impose sanctions on Russian fuel, Russian oil production could hit an 18-year low.
Quantitative easing may only provide temporary relief for an economy quickly becoming one of the world’s most isolated.