February 25, 2022
Having decided first to recognize the breakaway republics of Donetsk and Luhansk and then mount a special operation to reverse the pro-Western Maidan revolution of 2014, Russia’s leadership realized that there would be consequences to these actions. As the West made it clear from the outset that its response would take the form of imposing severe sanctions rather than a military, the issue of the economic damage that Russia would sustain naturally surfaced. President Vladimir Putin in his address announcing the special operation conceded that Russia’s economy would be affected but claimed that the government had taken measures to cushion the blow.
As a further measure, Putin exhorted businessmen to understand the situation and work with the government to find tools that would support production, the economy and jobs. The government for its part would provide good conditions for business, and more freedom for doing business. Most importantly, Putin promised “We cannot fully predict geopolitical risks, but in the relationship between government and business, of course, you can expect that government predictability will be clear and stable.”