The Russians are in danger of quickly becoming impoverished

Experts say the tough sanctions imposed on Vladimir Putin’s government will lead to rapid poverty for the Russian people, which will add value to the war chosen by its president.

“Russia, which is not a very rich country and does not have much agricultural diversity, is fast approaching a food security problem and is experiencing rapid population poverty, especially among the middle class.”

Sanctions have been mounting for nearly three weeks against Russia and its oligarchy in an attempt to bend Vladimir Putin and end the war he launched in Ukraine on February 24.

Courtesy Image

Francois Audet, OCCAH

These measures include the closure of airspace for Russian aircraft, the suspension of visas, the restriction or ban on exports and imports, and the freezing and confiscation of the assets of more than 700 Russian oligarchs.

Mr. According to the report, these sanctions have somehow separated Russia from globalization and severed its supply chain.

“We looked at how the ruble is [la monnaie russe] Is collapsing. Severe inflation is estimated here compared to emerging inflation in Russia, ”he says.

In fact, in Canada, annual food inflation reached 6.5% in January 2022, while in Russia it reached 11% at the end of the year, according to the Food and Agriculture Organization of the United Nations.

Ability to purchase items

Conclusion: The purchasing power of the Russians is likely to fall sharply due to the conflict.

Arthur Silva, professor of economics at Laval University, said Russia’s situation was “dramatic” and that the country was experiencing its worst economic crisis.

“In the next few weeks, in the next few months, markets in Russia are expected to have completely empty shelves. So products that are no longer available,” he warns.

For his part, Florian Manoris, a professor of economics at ESG-UQAM, agrees.

“Although China is somewhat an alternative to agricultural food, the EU represents almost 30% of Russia’s imports,” he says.

Oil and gas

However, the poverty of the Russians does not happen overnight; Mr. that it will be done gradually. Maneris inspected.

“The measures currently being taken will greatly destabilize the Russian economy, but they will not stop it, or at least prevent Vladimir Putin from pursuing his war effort,” the member explained. Internship Center for Research in Organizational Analysis (CIRANO).

Every day, Russia continues to receive millions of dollars from its oil and gas exports, equivalent to 10% of its GDP, Maneris points out.

According to him, it is obvious that Vladimir Putin can continue his war as long as Russia continues to trade hydrocarbons.

– Hello with Archumbold, The Journal of Montreal