The consequences of Russia’s invasion of Ukraine will devastate the Russian economy.

This is the opinion of Dr Roelof Botha, economic adviser to the Optimum Group.

“Nowhere in the modern history of the world have there been so many sanctions simultaneously, covering virtually every aspect of economic and financial arrangements, imposed on a country as we see right now,” says Botha.

He says the war will cause hunger not only in Ukraine but in Russia too.

“I have no doubt in my mind that Vladimir Putin is going to experience incredible resistance from within his own country because of this unilateral, unwarranted and mindless act of military aggression towards a democratic country that was on the verge of becoming a member of the European Union. It has profound implications,” says Botha.

WATCH: Economic adviser Dr Roelof Botha talks about the impact of the Russia-Ukraine war on Russia, and explains why South Africa’s economy should remain relatively unscathed.

Botha says it will take at least two decades for the Russian economy to recover from what has happened within the space of 12 days.

“At some point, there won’t be any food left in the stores… there won’t be any money. It will be worthless. It will be like the Zim dollar. Putin has destroyed that currency.”

The average Russian’s lifestyle has declined within a week, says Botha. “It is beyond comprehension. They will, within weeks from now, be classified as a poor country,” says Botha.

The crisis will also have global consequences, especially for the rest of Europe, because their stock markets are suffering and their currencies are under pressure.

Leave BRICS

On a political level, Botha says South Africa should withdraw from BRICS, the association of the emerging economies of Brazil, Russia, India, China and South Africa.

“As far as I’m concerned, there never was a good reason for South Africa to become part of BRICS and there’s a very good reason now to get out…,” says Botha.

“Russia and China are two countries permanently guilty of gross human rights violations. What the hell are we doing in BRICS?”