Russia’s economy holds up, but growing challenges test Putin

By DAVID McHUGH
AP Business Writer

Russia has weathered sweeping Western economic sanctions better than many expected. Economic life for everyday Russians hasn’t changed that much, with familiar imported goods either still available or replaced by local knockoffs. There’s no mass unemployment, shuttered banks or other signs of crisis. But President Vladimir Putin’s fortress economy faces an even tougher test in the months ahead. New sanctions are finally targeting the full scale of the Kremlin’s biggest moneymaker: oil exports. Some economists think that could mean a breaking point for government finances this year. And while the Kremlin may not run out of cash, it faces long-term stagnation without outside investment or Western technology.