Sanctions Create Circuitous Trade Routes

The Russian economy is experiencing growth by diversifying its import sources, especially in the tech industry, which has seen significant shifts since the war. As Russia reduces its reliance on European tech, it has increasingly turned to Kazakhstan, with electronics imports rising from $40 million in 2021 to $280 million by 2023. However, this growth involves Kazakhstan importing components from Europe, processing them, and then exporting them to Russia, raising questions about the effectiveness of sanctions. The situation suggests a complex web of trade that circumvents direct sanctions, indicating that while the sanctions may hinder direct transactions, they are prompting alternative supply chains.