Two reasons Putin thinks he can weather sanctions

The nature of the Russian attack on Ukraine, striking across the country and not just concentrating on the territory claimed by the so-called breakaway republics, shows Vladimir Putin’s confidence that he can weather whatever sanctions the West imposes. This is not an assault designed to sit in any kind of grey area, but an unambiguous invasion — which the West has always made clear would bring forth the maximum set of sanctions.

Putin’s confidence is driven by two things. First, as I say in the magazine this week, Russia has been preparing to face expanded sanctions since the annexation of Crimea in 2014. It has built up foreign currency reserves of $630 billion, an increase of 75 per cent since 2015. It now has the fourth largest currency reserves in the world, despite being only the 11th largest economy.