The pressure on Russia from sanctions is fading. Exports of manufactured goods to Russia have been rising rapidly in recent months, while exports of goods delivered to Russia’s friendly neighbors are soaring far beyond pre-invasion norms. If export restrictions and sanctions enforcement cannot be tightened further, the Russians may be able to restock some of their lost military equipment—and prolong the war. The overall trend is that exports of dual-use goods are rising, including from Europe. Moreover, the Chinese data show that exports of dual-use goods continued to jump in December, even if Korean exports of dual-use goods has retreated somewhat from the surge in October. The detailed data from Turkey are not yet available, but it is possible that their exports of dual-use goods also jumped in December.
- Date Posted:
- January 20, 2023
One recurring feature of that history has been the procurement power of governments. Freed from the necessity of abiding by a neat cost-benefit calculation, the state has repeatedly helped overcome market risk by pulling innovative suppliers down the learning curve to the point where they can offer low-cost and reliable products to commercial markets. In these cases, “product-market fit” results from a state-initiated dynamic process that succeeds in aligning an immature “product” with a nascent “market.”