Russia's economy: Is it crumbling or standing strong? - DW News

[TexasTowelie]

Sanctions against Russia are already having an effect. Prices are already rising, companies are closing and unemployment is rising. Especially in Russian aviation. What is the impact Russia's war against Ukraine is having on the country's industry?

[PortTack]

1. Sadly the sanctions are not hurting nearly as much as hoped

[DetlefK]

2. Sanctions never work immediately. It took 3 years until the sanctions against Iran began to hurt.

[PortTack]

4. Wow...wasn't aware of that

[DetlefK]

3. Why Russia's high-tech sector is dead: In a globalized economy, you NEED raw materials from abroad.

In a high-tech company (electronics, pharmacy...) you need very special raw materials and very special equipment. You need things that are so rare that only a handful of companies in the entire world are selling these.

For example, metallo-organic chemicals used in the semiconductor industry. There is only half a dozen companies in the entire world who make them, because they are so hard to make to a good purity.

For example, all sorts of state-of-the-art lab-equipment. Most of it is produced in US, Europe, Japan, Korea and Taiwan. What do you do in Russia if your expensive equipment breaks? You cannot buy a replacement and you cannot buy spare-parts.

For example, regular maintenance of equipment by external experts. The high-end stuff needs to be calibrated and checked by a professional once a year. What do you do if that professional simply won't come because of the sanctions?




Russia's only hope is buying from China, and THAT WON'T BE CHEAP. Because businessmen in communist China are the biggest greedy capitalists you can imagine.