Valdai Club

By the end of the second quarter of 2023, protest activity and the delayed consequences of the pandemic had revealed a number of problems that could be layered on top of the typical difficulties for the Israeli economy during the escalation periods in the Middle East conflict. However, there are also what could be called “anchors of stability”, that enable the state to cope with current challenges, albeit not without losses

The increased likelihood of a large-scale escalation of the Middle East conflict, which is also associated with the latest transit of power in Israel, worries not only the international community and peace mediators, but also foreign investors, forcing them to reconsider their strategy of maintaining a presence in the country. Of concern is Benjamin Netanyahu’s failure to deter potentially risky activities from far-right members of his cabinet, writes Elizaveta Yakimova, Research fellow at the Department of Israel and Jewish Communities, RAS Institute of Oriental Studies.