Home » Praise from Russia’s economy – but the problems are growing

Praise from Russia’s economy – but the problems are growing

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Praise from Russia’s economy – but the problems are growing

A look at the various Russian industries also reveals an ambivalent picture. On the one hand, there are real war winners: In regions with a strong armaments industry – for example the Urals – the economic engine is humming. But by no means all sectors were able to adapt successfully after the departure of western partners. Above all, the auto industry is still deep in the crisis. Attempts to conceal this backfire: the restart of the Soviet brand Moskvich, which was celebrated by the state media last winter, ultimately turned out to be a copy of the Chinese small car JAC JS4.

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After the exodus of Western companies, there are also enormous problems with the production of household appliances and tools. While retail has built new supply chains, consumption remains weak. After last year’s surge in inflation, many people simply don’t have the money to buy anything else besides groceries.

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