Russians are experiencing significant inflation and shortages of goods as a result of sanctions

Most imported products are still limited in Russia, and prices for some categories have increased by 70-80%.

In Russia, many companies stop working and leave / photo ua.depositphotos.com
In Russia, many companies stop working and leave / photo ua. depositphotos.com

As a result of the sanctions imposed, Russians are experiencing significant inflation and a shortage of goods.

This was announced by the Vice-President for Economic and Political Research of the Kyiv School of Economics (KSE) Natalia Shapoval on the air of the informational telethon.

“Most imported products are still limited in Russia, and prices for some categories have increased by 17-20%, and for some by 70-80%. For example, imported cars, washing machines have become very expensive and very difficult to find. Mostly Russians are switching to Chinese products. Everyone is affected,” Shapoval explained.

She emphasized that in Russia many companies stop working and leave, and this has a significant negative impact on the labor market.

“In the IT sector, according to various estimates, from 100,000 to 200,000 specialists left the country. This means that the intellectual potential of the IT sector has become very limited. That is, Russia is returning to Soviet times, when it can somehow work , but slowly and poorly, but somehow it works. This is where their economy is now returning,” Shapoval noted.

The vice-president for economic and political research of KSE noted that sanctions against Russia are in force, despite the assurances of the Russian propaganda media that import substitution is taking place in the Russian Federation.

“This is part of Russian propaganda. Back in 2014, when Russia started the war with Ukraine, there were also sanctions and there were also import substitution programs in the Russian Federation. Over the 8 years of this import substitution, the effect was very, very insignificant. There are relevant studies where scientists looked at the previous period and it has been proven that during this time Russia has not been able to create anything,” Shapoval said.

The expert noted that the impact of sanctions in the Russian Federation is becoming greater and greater, it “rolls like a lump” and all Russians already feel it.

“So far, Russia can hide some imbalances in the economy. Previously, they had dollars and foreign exchange earnings for more than a year of imports. Now they have, at best, 2-3 months of imports, which they can buy with available funds. This amount is constantly is reduced due to the fact that trade with the Russian Federation is decreasing and the embargo on oil is becoming more and more effective, for example,” Shapoval emphasized.

She noted that as a result of the sanctions imposed against Russia, the aggressor country had already suffered significant losses.

“It is important that their Central Bank reserves of $300 billion are frozen. Also, about $150 billion of gold is actually sanctioned and Russia cannot operate it either. This is important because these funds are the Pension Fund of the Russian Federation or funds with which Russia can finance the war,” Shapoval stressed.

(C)UNIAN 2022

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