Destruction of the Russian economy. Day thirty-five 

Soon Russia’s model of existence will be identical to the Soviet Union, existence behind the Iron Curtain, in an economic vacuum

Caricature of the British newspaper The Guardian

Russia has attacked Ukraine and is suffering enormous losses not only at the front but also on its own territory. In addition to the thousands of their fellow citizens who died in Ukraine, the Russians have already received a devaluation of the ruble, rising interest rates on loans and mortgages, inflation, and physical isolation from the entire civilized world.

The next step is rising consumer prices and a deficit.

In a few days, Russia’s economy fell to the level of the 90s. Russia’s model of existence will soon be identical to that of the Soviet Union. Life behind the Iron Curtain, no opportunity to move freely around the world, economic vacuum. The economy will work for the domestic consumer, producing low-quality goods, there will be a shortage of imported goods, the ruble will lose its value, and the main demanded export goods will be oil and gas.

The situation on March 30, 2022

– Alisher Usmanov’s Mercedes was confiscated in Italy. This armored Mercedes Maybach S650 Guard VR10 withstands machine gun fire and grenades. It costs over € 600,000. In addition, Usmanov’s villa worth € 17 million and 6 companies with assets worth € 66 million were blocked in Sardinia.

– London will ban the maintenance of ships and aircraft of “sanctioned” businessmen from Russia. The British government is enacting legislation that prohibits Russian entrepreneurs subject to sanctions from using the services of British companies to maintain their aircraft and ships.

– Representatives of the European Union conducted searches in the offices of German Gazprom units as part of an investigation into the role of the Russian monopolist in raising gas prices in Europe to record levels. This was reported by Bloomberg.

– The European Union is preparing new sanctions against Russian banks, writes WSJ, citing informed sources. They are expected to be announced next week. Sanctions could also affect banks’ cryptocurrencies to prevent Russia from evading sanctions.

– Slovakia expels 35 Russian diplomats from the country.

– Russia has banned the use of foreign software. So far, only government agencies and government customers on critical infrastructure. The ban will be introduced from January 1, 2025. By this date, owners of critical infrastructure must switch to Russian software. Purchases of foreign software without approval are prohibited from March 31, 2022.

– AerCap has filed a lawsuit to insure Russian aircraft for $ 3.5 billion AerCap Holdings NV, the world’s largest aircraft leasing company, has filed insurance claims related to aircraft and engines stuck in Russia.

– The EU is considering imposing sanctions on more Russian banks, according to The Wall Street Journal.

– The Russian-French company PowerJet, which produces SaM146 engines for the Superjet 100, has suspended their maintenance and repair due to sanctions.

– One of the world’s largest lessors, Avolon said it could lose $ 200 million due to aircraft left in Russia. Avolon expects the losses to be covered by insurance. In total, Russian airlines leased 14 aircraft from the company, returning only four.

– Four EU countries have announced the expulsion of Russian diplomats. The Dutch Foreign Ministry expels 17 Russians on suspicion of espionage, Belgium – 21. Russian diplomats are expelled from Ireland and the Czech Republic

– The Russian government has legalized counterfeiting, allowed suppliers of imported products to sell them without the permission of the trademark owner, –  reports Interfax.

– A group of deputies of the Verkhovna Rada of Ukraine has registered a bill that provides for an increase in the tax rate for businesses that continue to operate in Russia by 50%. This was announced by Deputy Chairman of the Tax Committee of the Verkhovna Rada Yaroslav Zheleznyak, Bill №7232 .

– Britain refused to pay for Russian goods in rubles. This was stated by the representative of the Prime Minister Boris Johnson.

– Bulgaria does not intend to pay in rubles for the supply of Russian gas – a representative of the government.

– Russia has offered India to use its payment system for payments in rubles and rupees instead of SWIFT, Bloomberg reported. Delhi is interested in buying Russian oil and weapons.

– Following Ikea. Danish furniture company JYSK has announced a complete exit from Russia.

– Russia is going to officially allow smuggling. The Ministry of Industry and Trade will compile a list of goods that can be imported without the permission of the right holder, manufacturer or official dealer. Thus, the Russians will circumvent the sanctions and boycott of international companies that refused to sell their products on the Russian market.

– Canadian oil service company Calfrac Well Services has announced the suspension of all investments in Russia. The company said it had canceled all planned supplies of equipment and spare parts to the country.

– Holding S Group from Finland announced the termination of activities in Russia. The holding includes subsidiaries in the markets of food, durable goods, car service, hotel and restaurant services. In Russia, the company will close 16 supermarkets of its Prizma chain from April 1 and 3 Sokos Hotels.

– Fitch Ratings revoked the long-term and short-term ratings of the Russian airline Aeroflot after their confirmation at the SS level.

– Germany has frozen more than € 95 million in the accounts of companies and individuals from Russia.

– The Finnish company Nokia has played a key role in providing Russia with tools for cyber espionage. She helped Russia build an Investigative Action System (SORM), which is likely to be in use today, although the company has announced a halt to its sales in Russia and condemned the invasion of Ukraine. After all, Putin continues to cut off and block anti-war voices inside the country.

– Migrant workers who arrived in Russia from Uzbekistan, Tajikistan and Kyrgyzstan are confused. Over the last month, national currencies – som, sum, somoni – have grown significantly against the ruble. Foreigners have to send money home at a new rate. They began to lose some of their earnings during the exchange of currencies. Working in Russia is becoming less profitable. 

– Canadian gold mining company Kinross Gold is negotiating the potential sale of all its assets in Russia.

– Poland plans to completely abandon Russian coal in April or May, and by the end of the year – from oil.

– Chairman of the State Duma Vyacheslav Volodin proposed to include in the list of goods exported to “unfriendly countries” for rubles, oil, grain and fertilizers. 

– Poland has passed a bill providing for an embargo on coal imports from Russia.

– The price of onions in Moscow has increased by more than 182% since the beginning of the war in Ukraine.

Destruction of the Russian economy.  Day Thirty-fifth 02

– Roskomnadzor appealed to the Wikipedia administration with a request to delete information about the Russian war against Ukraine. Failure to delete the online encyclopedia carries a fine of 4 million rubles.

– Russian oligarch Oleg Deripaska lost an appeal to lift US sanctions. The U.S. District Court of Appeals completely rejected it. The oligarch’s arguments were rejected as unfounded.

“Gas flows through the Yamal-Europe gas pipeline have dropped to zero,” according to Reuters.

– Israel and Turkey are discussing the construction of a gas pipeline to the Israeli Leviathan field as an alternative to Russian gas supplies to southern Europe.

– Luxembourg froze Russian assets by 2.5 billion euros. Джерело:



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