Russia’s economy is entering what is possibly the most precipitous tailspin in modern economic history.
Mimicking the rapid fall of Venezuela, the Russia asset and futures markets have shed billions and billions of dollars. Days of closure of Russian commodity markets have resulted in many major Russian companies plunging to their lowest ever prices, likely to bottom out the moment the markets reopen.
Russia will likely enter a recession soon even if sanctions are lifted. With the possibility of spiraling into a full on mini-depression if said sanctions last for a few months.
With over half their foreign cash reserves frozen, and major Russia asset holders like Germany moving to freeze even more, Putin only has a small, and ever shrinking cushion to work with.
If sanctions last a full year, and continue to ramp up, we could even see the complete collapse of the Russian economy. Particularly if major consumer countries divest from Russian oil and gas.