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How Regions Are Suffering From War

June 16, 2022
Natalya Zubarevich

This is a summary of an article originally published by Reforum.

In this interview, the Moscow State University instructor says:

  • “The problem today is the very concentrated involvement of Russian enterprises in global chains. Either you are exporters or manufacturers of processing products and you get a lot from imports—parts, equipment, components. Exports to Europe have been closed, and it is impossible to redirect these gigantic flows to Asia. … I feel sorry for the most advanced regions, which are maximally included in the global value chains. Today they pay for their activity and sink the most.”
  • “Let’s compare April 2022 with March 2022. ... Industry—minus 8.5%, extractive industry—minus 10%, processing—minus 6%. … Technical degradation awaits us. Each city will have its own problem ... Russia will break up into such problematic cities. … Representatives of one enterprise told me that they were looking for drawings of Soviet cars.”
  • “Now let's look at the service sector, April 2022 to April 2021. Trade minus 10% in real terms, wholesale minus 12%, non-food trade minus 17% … a contraction of effective demand.”
  • “The food industry, the agricultural sector will be able to develop (if it is not crushed by quotas and export duties: the authorities actively use them so that prices within the country do not grow). Domestic tourism … this is a matter of income and price tag, which will be rolled out by tourism workers.”
  • “[W]here this road may lead further in the coming years, I don’t know: it’s not the economy that makes decisions, politics drive the economy. And I can’t say anything about that—I don’t have the qualifications of a doctor of a certain specialty.”

Full article in Russian at Reforum.

This item is part of Russia Matters’ “Clues from Russian Views” series, in which we share what newsmakers in/from Russia are saying on Russia-related issues that impact key U.S. national interests so that RM readers can glean clues about their thinking.

The opinions expressed herein are solely those of the author. Pixabay photo free for use.