Sanctions so far fail to dent Russia's war effort

Sanctions on Russia, offset by a windfall from high-price energy exports, haven’t inflicted enough economic pain so far to hurt Moscow’s war effort or push President Vladimir Putin to the negotiating table.

That resilience isn’t expected to last, with many economists predicting a deep recession later this year, a rise in poverty and a long-term degradation of the country’s economic potential. For now, the slow pace of sanctions, Russia’s successful efforts to stabilize its economy and its ability to keep oil and gas flowing overseas have cushioned the blow for Moscow.

That is allowing Russia to continue its war effort in Ukraine for now, said Janis Kluge, an expert in the Russian economy at the German Institute for International and Security Affairs.

“Right now, the economic sanctions are not an incentive for Russia to negotiate,” Mr. Kluge said. “The Kremlin is convinced it can withstand a few years with a bad economy and wait for better days. Russia is emboldened by its own success in fending off the West’s sanctions.”