The resilience of Russia’s stock market and its economy is a complete mirage masking deeper pain, Yale researchers say

• The functioning of Russia’s stock market is an illusion, two Yale researchers told Insider.
• It’s part of the country’s efforts to mask pain in the economy amid costly war and sanctions.
• Investments in the country are likely going nowhere as Moscow’s economy spirals.

Russia’s economy is on a downward spiral – and so long as President Vladimir Putin remains in charge, any money invested in the country is bound to go nowhere, experts told Insider.

That apparently stellar performance of the Russian stock market this year is ultimately an illusion meant to mask deepening pain in the country’s economy. The Moscow Exchange, Russia’s largest benchmark equity index, has soared 43% since the start of the year, more than doubling the gains seen in the S&P 500, but those gains are deceptive, according to Yale researchers Jeffrey Sonnenfeld and Steven Tian.