Leaked Kremlin Report: Sanctions Are Driving Former Soviet States Closer to the West

Alsharq Tribune- Mohamed Otaify

Western sanctions are weakening Moscow’s ties with former Soviet republics and hindering its economic expansion into the Global South, according to a leaked Russian government document dated February 10, as reported by the Financial Times.

The report, presented during an April 2024 strategy session led by Russian Prime Minister Mikhail Mishustin, acknowledges that Western economic pressure and incentives have fractured Russia’s relationships with key trade partners.

Senior officials and executives from major state-owned companies attended the briefing, including hardline Russian figures Sergei Karaganov and Alexander Dugin.

The document outlines Russia’s ambition to establish a Eurasian economic bloc to rival the U.S., EU, and China, intending to outlast negotiations over Ukraine. However, it concedes that Western nations have successfully drawn Central Asia closer by offering alternative trade routes. Meanwhile, some Russian allies have distanced themselves, imposing additional fees on Russian businesses to mitigate sanction-related risks.

The report highlights Russia’s waning influence, noting that Central Asian nations are increasingly integrating into alternative regional alliances, adopting English over Russian, and aligning with Western education systems.

It also underscores Kazakhstan’s gradual drift from Moscow, while Kyrgyzstan remains a key trade partner. Belarus, however, is cited as a rare success, with leader Alexander Lukashenko reaffirming his country’s full alignment with Russia.

Despite ongoing efforts to strengthen the Eurasian Economic Union (EAEU), the report acknowledges persistent challenges, including sanctions, currency restrictions, and a shift toward alternative payment systems. A spokesperson for Mishustin declined to comment.

Earlier in February, Mishustin reported to President Vladimir Putin that Russia’s nominal GDP had reached an all-time high, presenting it as proof of economic resilience against sanctions. However, the report omits key economic struggles, including record food inflation and a sharp decline in foreign currency reserves.