Trump's Demand to Russians and Its Implications
Russian economist Igor Balynin has expressed concerns over the potential negative impact of U.S. tariffs and sanctions on Russia's economy, but also highlighted some mitigating factors.
In a recent statement, Balynin, a candidate of economic sciences and associate professor at the Financial University under the Government of the Russian Federation, emphasised that these measures contribute to economic challenges in Russia, limiting growth and reducing living standards. However, he also noted that increased use of ruble settlements lessens dependence on volatile exchange rates, providing a partial cushion to the economy.
The U.S. President, Donald Trump, had earlier announced an ultimatum regarding Russia's involvement in the conflict over Ukraine. If not resolved within 10-12 days, the U.S. would impose secondary tariffs of around 100% on goods from countries that continue to partner with Moscow. This ultimatum, as reported by "Gazeta.Ru", has raised concerns about the future of the dollar exchange rate.
According to Balynin, economic relations are built on trust and mutual respect, and the adoption of any decision in the U.S. does not automatically mean that key trading partners of the Russian Federation will follow its ultimatum. He also questioned the alignment of potential new tariffs with the rules of the WTO, stating that they do not.
Despite these challenges, Balynin remains optimistic about Russia's economic ties. He concluded that the Russian Federation will continue to build economic ties with countries that adhere to principles of equality, legality, and mutual respect.
Moreover, Balynin did not express concern about the potential impact of new tariffs on the standard of living of Russians. He believes that citizens' incomes are protected by the state and the labor market. In fact, the average salary in Russia in May 2025 was 99,422 rubles, a 15% increase from May 2024. The minimum wage in Russia in 2026 is expected to exceed 27,000 rubles, representing a more than 40% increase in two years.
However, the recently adopted package of sanctions by the European Union has created risks for economic growth in several European countries. Balynin noted that unfriendly countries impose illegal sanctions on Russia, but its economy continues to grow faster than theirs.
In conclusion, while U.S. tariffs and broader sanctions harm the Russian economy and reduce real incomes, structural adjustments like ruble settlements somewhat soften the impact. Russia, under Balynin's assessment, remains resilient in the face of these challenges and continues to seek economic partnerships based on principles of equality, legality, and mutual respect.
[1] Source: Gazeta.Ru
- Balynin's assessment of the U.S. tariffs and sanctions on Russia indicates concerns about the potential negative impact on economic growth and living standards within the Russian industry and business sectors.
- In the context of war-and-conflicts over Ukraine, Balynin raised doubts about the future influence of U.S. tariffs on the dollar exchange rate and questioned the alignment of such tariffs with the rules of the World Trade Organization (WTO).
- Despite political tensions and economic challenges, Balynin expressed optimism about Russia's economic ties and economic partnerships with countries that adhere to principles of equality, legality, and mutual respect, in both the local (business and finance) and general-news arenas.
