Russia has built a ‘fortress economy’, but its people are feeling the pressure


The economy of the Russian Federation would suffer from Western sanctions. The ruble loses value, international companies flee and dramatically higher prices are coming soon. This means that the Russian economy should continue to stagnate, a stagnation that began long before the invasion of Ukraine. However, several economists believe that a complete collapse is unlikely. Despite heavy financial sanctions, Russia has developed “a battle-ready economy,” says Richard Connolly, a Russian economic analyst at the Royal United Services Institute in the UK.

The Russian government’s significant involvement in the economy and the money it still makes from oil and gas exports – even with bans from the United States and Britain – will help soften the blow to many of its citizens who have suffered three serious financial crises in the past. 30 years. Yet the Russian currency has fallen dramatically, which will drive up the prices of imported goods when inflation was already in full swing at 9%.

Bollyinside.com reports that although the sanctions have frozen much of Russia’s foreign currency reserves, state finances are healthy with low debt. When the government needs to borrow, its creditors are mainly domestic banks, not foreign investors who might abandon it in a crisis.

Bryansk governor warns of possible potato shortage
On March 4, Alexander Bogomaz took part in a meeting chaired by Minister of Agriculture of the Russian Federation Dmitry Patrushev on food price stabilization and food security. The governor of the Bryansk region devoted part of his speech to issues of interaction between distribution chains and agricultural producers and, in particular, to the topic of a possible shortage of red potatoes.

Source: en.potatosystem.ru

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