Western sanctions against Russia are working and are already hitting the aggressor’s economy hard, according to Ukraine’s Foreign Intelligence Service, which cited declines in key sectors. At the same time, the Kremlin is trying to offset its losses by looting temporarily occupied Ukrainian lands.

Sanctions squeeze the Russian economy

Business activity in Russia continues to fall. The manufacturing PMI, calculated by S&P Global, dropped to 48.7 in August out of 100 points, marking the third consecutive month in contraction territory.

Sunflower oil production in Russia also fell by 11% year-on-year. The coal sector is even worse off: 23 enterprises have halted operations due to the crisis, while 129 mines and open-pit sites, responsible for up to 85% of the country’s coal output, are seeking government support.

Coal and grain from occupied territories

Despite the crisis, Russia is trying to keep its economy afloat by plundering Ukrainian lands. New images from temporarily occupied Mariupol have shown how Russian forces are loading ships with stolen grain and coal. 

“Mariupol port. Two ships are being loaded at the same time… We expect the coal ship to head to the port of Temryuk for export clearance to Algeria, and the bulk carrier with grain to go to Egypt. Looting has predictably resumed,” reported Petro Andriushchenko, head of the Center for the Study of Occupation.

Stolen grain becomes the Kremlin’s business

According to the Center for National Resistance, Russia has turned stolen Ukrainian grain into a global business. Wheat that Moscow claims as “Russian” is purchased by 70 countries, including Egypt, Türkiye, and Iran.