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The war in Ukraine is still continuing, with Russian fighters focusing ther energy in the eastern side of the country. In the United States, there are concerns about funding after a bill failed a crucial vote in Senate. The government warned earlier this week that Ukraine will run out of funds by the end of the year.
It is still too early to predict how this war will end but odds are that Russia will win the war. In fact, it can boast some important victories to date. For one, the military still occupies more than a third of Ukraine and has stalled Ukraine’s counteroffensive.
Watch here: https://www.youtube.com/embed/Azm4yKKIlqE?feature=oembedRussian economy is doing well
Perhaps, the biggest Russian victory is on the economic front, where the country has defied odds of western sanctions. The most recent data showed that Russia’s retail sales and industrial production improved in October.
Additionally, the country’s unemployment rate has dropped to a record low of 2.9%. That is a strong figure considering that the US has an unemployment rate of 3.9%.
Russia has achieved this by investing in the defense industry in a bid to support the war efforts. Most importantly, it has benefited from the elevated prices of crude oil. In this regard, the country has succeeded in shifting its energy market from western countries to Asian ones like China and India.
As a result, Russia has succeeded in ensuring navigating the price cap imposed by the American and European governments. Russian urals have consistently traded above $60 for the most part of the year.
India has emerged as a big buyer of Russian crude oil, which has helped companies like Reliance Industries and India Oil Corporation. These firms have bought cheap Russian oil, processed it, and then sold it to countries like the US and in Europe.
MOEX index is doing well
MOEX vs DAX vs Nasdaq 100
Another evidence that Russia is winning is its stock market. As shown above, the MOEX index, which tracks the biggest companies in the country, has jumped by 120% in the past 12 months. In the same period, the Nasdaq 100 index and the German DAX has soared by almost 20%.
Russian stocks have jumped as most people and oligarchs have moved their investments to the country. Most of these people have moved from Western capitals because of sanctions. Also, they are doing well because of the surging demand for commodities.
A look at the MOEX Russia components shows that most of them have jumped this year. HeadHunter Group shares have jumped by over 133% as demand for workers rose. The other top performers are companies like Surgut-pref, Globaltrans, and Ros Agro. Other well-known companies like Sberbank, Likoil, and Rosneft have also rallied.
The only weak link to the notion that Russia is winning is the Russian ruble, which has plunged by over 80% from its highest point in 2022. It has also weakened by over 28% this year. This performance is likely because of the overall strong dollar and weak ruble demand internationally.
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