Ukraine Invasion: Russian people start to feel the pinch of economic sanctions
The economic consequences of the invasion are being felt hardest in Russia itself.
Sanctions have thrown the economy into turmoil, and many international brands like Apple are now refusing to sell their products inside the country.
For many Russians, their way of life is changing, leaving them to question whether they want to remain in a pariah state.
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Impact of sanctions on the Russian economy:
1. Russian economy growth for the first quarter of this year amounted to 3.7%. At the same time, if we take industry separately, it grew by 5.9% over the quarter, and in March, compared to February, the growth in industry amounted to 9.9%.
2. Suddenly, RF budget revenues increased by a third (30.4%), which caused a budget surplus of 2,417 billion rubles, which is 3.6 times more than last year's surplus. And that's for the quarter.
3. Inflation has been declining for several weeks in a row. Gasoline prices began to decline in March and continued into April. Inflation is declining because Russia has stopped its imports, today prices are slowly untied from world prices.
4. Unemployment remains at a historically low level and is not going to rise – 4.1%
Impact of sanctions on the US economy:
1. The US economy contracted in the first quarter of 2022 by 1.4 percent year on year.
2. The US trade deficit in March amounted to $109.8 billion against 89.8 billion a month ago. The pace of deficit expansion is unprecedented.
The impact of sanctions on the economy of Germany and the EU:
1. The volume of imports from Russia to Germany, expressed in financial terms, rose to historical records. And we are not talking about energy supplies, but about other types of goods. This is written by the German edition of Die Welt. The Federal Statistical Office of Germany reports that the turnover with the Russian Federation in March alone amounted to more than 3.6 billion euros (in 2014 it was 3.5 billion), which is 44% more than last year.
2. Germany is experiencing an inflationary shock in the food retail sector. This is stated in an article in the German newspaper Handelsblatt. The publication recalled that food prices rose by more than 6 percent in March. At the same time, the cost of fresh vegetables increased by more than 14 percent, and vegetable oil – by 17 percent. The consumer climate in Germany is deteriorating. According to the GfK forecast, the consumer climate index will decrease by 26.5 points. This is the lowest value for all time of measurements. Company expert Robert Kechkes explained that consumer budgets have shrunk due to overall rising costs. The reason for this was the strong uncertainty of the Germans, he added. Earlier, the country's Federal Statistical Office (Destatis) reported that annual inflation in April 2022 in Germany will accelerate to 7.4 percent, which is a record for many years.
3. Consumer prices in the euro area in April rose by 7.5 percent in annual terms, according to preliminary data from the Statistical Office of the European Union. This is an absolute record in the history of calculations. Inflation has accelerated, in March it was 7.4 percent. Inflation exceeds the target of the European Central Bank (set at two percent) by more than three times. This trend is associated primarily with the rise in energy prices, despite the fact that the growth rate slowed down to 38 percent (compared to 44.4 percent in March). The lowest inflation rates over the past 12 months were recorded in Malta (4.5 percent), France (5.1 percent) and Portugal (5.5 percent), the highest in Lithuania (15.6 percent), Estonia (14 .8 percent) and the Czech Republic (11.9 percent).
4. After the imposition of sanctions against the subsidiary of the Russian holding Novatek, Novatek Green Energy in Poland, the supply of blue fuel to dozens of municipalities was stopped. In Bulgaria, the cost of gas due to the cessation of supplies from the Russian Federation increased by 50%.
5. The euro crashed to the lows of early 2020, before the lockdown.
6. Europeans began to suffer from the closure of the Russian skies in response to the closure of the European skies for Russian companies. Because of this, German Chancellor Olaf Scholz recently had to fly to Japan via the North Pole, with refueling in Alaska. The total lengthening of the flight in one direction was an hour and a half. But this is for the chancellor, and for ordinary people, the delay compared to the normal route through Russia and China can be much longer. In addition, flying over the pole is more dangerous than flying over populated areas. There is nowhere to make an emergency landing and refuel, so the preparation of cars and pilots requires increased attention.
7. European Union airlines have been hit hard by sanctions against Russia. This is stated in the draft resolution of the European Parliament (EP). As noted in the draft, the aviation sector is faced with rising costs, rerouting and flight cancellations. The document states that the increase in the route for flying around the airspace of the Russian Federation and Belarus takes up to four hours one way, which leads to problems with refueling and an increase in the working day of the crew. The EP also drew attention to possible interruptions in the supply of titanium used in the construction of aircraft in the near future, the main producers of which are Russia and Ukraine.
The West poured all military surpluses onto Ukraine, and also took on the maintenance of the Ukrainian economy in the amount of 5-7 billion dollars a month.
Inside the countries that support anti-Russian measures, political problems are intensifying due to rising world prices.
That says it all…. That naive young Russian girl's only concern about the war is that she's not gonna be able to get the latest iPhone… I understand she's young and misinformed, but it is sad !
The russian people are going to get mader and madder and madder at Putin.I think they will assasinate Putin
Stone me it is a red headed russki. These ginger tops get everywhere there should be a law against being ginger. Now even the commies have gingers, no wonder Putin is pissed surrounded by gingers, God help us.
Straight to hell Pootin'.
Who cares, hopefully Russia ends up isolated permanently, F Russia
It's fake news, that's real news, pleas share it with your friends. https://youtu.be/jdfTEgC4kIw
Butchers!
Until there is no more then the streets will be filled with the hate for Putin……
Russian are all welcome to philippines
Except putin and lavrub
They are not welcome
Russia needs more punishment
fukin putin why some one who got balls put him in jail
This is a lot better than ABC's reporting on the same story. Apple pay, that's what she is worried about? Looks like the sanctions are a minor inconvenience at most.
No worries then!
Yet with all this Putin's approval I'd at 84%on the 1sy of April
Screw Russia
OMG!!! cant imagine a life without Apple Pay ;))
Time to do something about their insane leaders….instead they leave and become burdens to the rest f the world.
I wish her all the luck in the world. I’m surprise anyone would want to stay in Russia even before the war. Putin is a sorry excuse for a human being.
how terrible it is that so many innocent people have to pay the price of one mans stupid actions
This is just the beginning. The mobile young leave now. This will hurt Russia on the long run.
All the big corporations doing something good for once 👍👍👍
Russians are leaving Russia by thousands per day! They want to get out before Putin blocks escape with a iron curtain, to block people from leaving! No one in Russia, wishes to live in this new oppressive Russia!
Look up the Budapest Memorandum.The .U.S. is only doing what they promised to do when they signed that document.
Good luck to the lady selling up and moving out..I hope she makes it out of there safely..and thoughts and prayers to the people of Ukraine 🇺🇦
When…where will it end? Putin started something that will have long lasting effects aside from all the murdered citizens! And…the little man Putin, sits before his screens marveling at his accomplishments! Putin is like Caligula…who just didn’t have these Media screens to salivate over!
Viva Ucranias, Viva Zelenski
It's a shame what Putin is doing to his people.
I don't care
free Russia
I hope China can step in and help the poor little Russian army with some equipment and soldiers over the age of 16 or else the immense and heroic Ukrainian Army will annihilate such a little country like Russia. I still have a a Black Widow catapult if Vladimir Putin needs it.
Love to Ukraine. Love to the Russians who deny Putin. Heroic them all.
The Japanese government is still pursuing profits without withdrawing from oil and natural gas projects from Sakhalin, Russia. The facts can be easily verified by searching the keywords Sakhalin, natural gas, and Japan.
Very good!👍🏻 Back to Soviet era! Enjoy Russian people!!
Americans started feeling the pinch in January 2021 when Biden shut down the Keystone pipeline on day one in office.
I feel sad for the Russian people in general who are being effected in their daily lives and just want to get on with normality.
Sanctions it not enough. I wanna see the Russian people suffer.. Losing Apple wont make them suffer.
The west allowed Russia to thrive for decades, but for what.
Sorry girls… say bye bye to IPhone, McDonalds, Gucci, Levis, HM, BMW….
Yeah, it will be hell. Upfront communism. It has been hidden but now they do not need excuses.
MORE WORRIED ABOUT USING THE PHONE YOUNG DON'T CARE ABOUT WAR OR KILLINGS
IF RUSSIA ISN'T TAKEN DOWN FOR GOOD THE WORLD WILL SUFFER
Wow she can't swipe her phone and pay, has to actually reach for wallet. GG
Russian people will suffer. Russian soilders will die. War is old men talking young men dying. People who didn’t deserve to starve will starve. Russia needs to stop. Russian people all need to protest not just for Ukrainian people but for themselves to eat! They will starve. Russian people are going to hurt for no reason because of their government this is why democracy is so important.
May the Russian people see Putin’s greed, lies, love for power and recognition. May they see him as murderer of Ukrainian civilians and the cause of economic havoc worldwide due to his initiated war. May they unanimously overthrow him from being president. May the Russian military stop supporting him. Putin has lost a sound mind.
Putin ≠ Russia
Maybe someone can stop Putin.
Sanctions? These are no sanctions, just a "special economic operation", according to the New Russian Dictionary. Welcome to North North Korea.
0::03 was right, it will be a very long time if they do recover from these sanctions imposed, better start a new life a new beginning,
Its all because Ukraine wants to please US ,NATO
at the expense of Russia Security & Sovereignty
Its also because Ukraine President is an Israel Jew
The reason they want to please US led NATO
Than Russia which was link together once
Pleasing US led NATO will weaken the Region of Russia
Will strengthen US led NATO directly will Strengthen Israel
No wonder Israel PM quickly, excitedly visit Putin as to please him
Not to invade Ukraine
Putin is Smart. Putin already sense the Game played by US led NATO
Advantage by Israel
I say Uraaaaaaaaaaa to Putin
He made the Right decision for Russia
For the Security for Ukraine also for the World
Keep piling on the sanctions please.
This is heartbreaking, that the youth of Russia can see the truth when their parents can’t. Please somebody tell these young people it’s Putin the world is after for his crimes, not them. We feel sorry for them and wish them well and to be safe. Also us in the West are going to feel the squeeze too. Good luck to them all and I wish them a safe journey . They are very brave.