ITR Economics: 'Russia Needs the U.S. More Than the U.S. Needs Russia'

Europe will suffer substantial economic consequences from Russia’s invasion of Ukraine, while the Russian economy will be hurt by the array of sanctions imposed by the West. But the United States should emerge relatively unscathed from the “economic mayhem” caused by Russia’s aggression in Eastern Europe, unless the war escalates dramatically, predict the experts at ITR Economics.

“Russia is not important to the U.S. economically. However, we are Russia’s third most important export destination (primarily energy). That means Russia needs the U.S. more than the U.S. needs the Russian economy,” wrote ITR CEO and Chief Economist Brian Beaulieu in a March 2 blog. “China is the main destination for Russia’s exports (by far), followed by Germany and then the U.S. China can cover the pain being inflicted on Russia if it is a relatively short war. It will be much harder for Germany to do so.”