Russian Economic Deterioration Continues

 

 

As his military slogs through Ukraine, further degrading it's fighting capabilities, Putin's war  continues to have dire consequences for the Russian economy:

When Vladimir Putin announced the invasion of Ukraine, war seemed far away from Russian territory. Yet within days the conflict came home — not with cruise missiles and mortars but in the form of unprecedented and unexpectedly extensive volleys of sanctions by Western governments and economic punishment by corporations.

Three months after the Feb. 24 invasion, many ordinary Russians are reeling from those blows to their livelihoods and emotions. Moscow’s vast shopping malls have turned into eerie expanses of shuttered storefronts once occupied by Western retailers. [snip]

The economic consequences have yet to fully play out.

In the early days of the war, the Russian ruble lost half its value. But government efforts to shore it up have actually raised its value to higher than its level before the invasion.

But in terms of economic activity, “that’s a completely different story,” said Chris Weafer, a veteran Russia economy analyst at Macro-Advisory.

“We see deterioration in the economy now across a broad range of sectors. Companies are warning that they’re running out of inventories of spare parts. A lot of companies put their workers on part time work and others are warning to them they have to shut down entirely. So there’s a real fear that unemployment will rise during the summer months, that there will be a big drop in consumption and retail sales and investment,” he told The Associated Press.

Putin has said that he thought the fall of the Soviet Union was "the greatest geopolitical catastrophe of the century."  He's working to one-up that for Russia in this century.

(Photo: closed shops in a St. Petersburg mall/ AP file photo)