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.

For a long time, US President Donald Trump held back the implementation of sanctions, despite Russia dramatically escalating attacks on Ukraine during his peace efforts. Recent strikes have involved over 1,000 missiles and drones targeting Ukrainian residential buildings, multiplying civilian casualties. Nevertheless, Trump invited Putin to Alaska and stated that Zelenskyy should consider ceding Ukrainian territory to stop the war.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.