• An exiled Russian oligarch told the Atlantic Council that Russia hasn't felt the full force of sanctions yet.
  • Mikhail Khodorkovsky said sanctions against Russia were initially "not exhaustive" enough.
  • Russian society will feel the full impact of sanctions in a few months, Khodorkovsky said.

Mikhail Khodorkovsky, an exiled oligarch who was once Russia's richest man, said on Tuesday that the impact of sanctions against Russia hasn't fully hit the country yet.

The US, the EU and the UK have levied several rounds of sanctions against Russia and President Vladimir Putin in response to the invasion of Ukraine. The sanctions have targeted the economy, the country's banks, and financially punishing oligarchs, while large numbers of Western firms have suspended their operations in the country.

"Russian society has still not felt the full brunt of the sanctions," Khodorkovsky said in an interview with the Atlantic Council. "For now, Putin has managed to keep the economy supported."

Moscow announced a package of economic measures last month designed to help defend the economy against Western sanctions. Among them was a decision by the central bank to double its main lending rate to 20% and provide liquidity to banks.

The currency, which collapsed after the invasion of Ukraine, has almost recovered to pre-conflict levels. Meanwhile, the country continues to earn revenues from energy sales which haven't been hit by sanctions. 

Nonetheless, the Institute for International Finance think tank estimates the Russian economy will shrink by 15% in 2022, wiping out 15 years of growth because of the war in Ukraine and Western sanctions putting pressure on Russia, Insider's Harry Robertson previously reported.

Khodorkovsky, former CEO of the Russian oil giant Yukos, said the initial sanctions against Russia were "not exhaustive" enough, but subsequent rounds of measures are now gradually taking effect.

"I think that Russian society will feel the full impact of the sanctions in a few months," Khodorkovsky said.

"This is important because Russian society does not want to see or hear what's actually going on and only the sanctions... will force Russian society to pay attention and wake up," he said in the interview.

Khodorkovsky, who once had a reported net worth of $15 billion, was sentenced to nine years in prison in 2005 after being charged with fraud and tax evasion. He was later pardoned by Putin and released in 2013 — one year early. Since then, he's participated in Russia's exiled opposition.

 

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