Saturday, May 28, 2022
Why Putin's Russia is still at war
Why Putin's Russia is still at war
RP ONLINE - 10 hrs ago
Moscow. The consequences of Western sanctions against Russia's war of aggression in Ukraine are omnipresent in the giant empire. But the desired effect of stopping the bloodshed is not in sight. Don't the penalties work?
Russia's state media reported maliciously about rising fuel prices in Germany and exploding consumer costs in the EU. They are happy that everything is getting more expensive in the West. It is the sound of Kremlin propaganda that the EU and the US have issued five packages of sanctions to bring Russia to its knees because of Moscow's aggression against Ukraine. But in the end, the West itself is massively damaging its economy and its citizens. Above all, however, the goal of stopping Russia in Ukraine will be missed by a long way, say Moscow with satisfaction.
There are now around 10,000 sanctions. Russia is the country with the most sanctions in the world, it says in an almost triumphant tone. The fact that masses of shops and international retail chains are closing in the capital Moscow, large corporations such as Siemens participated in the tsarist era and Soviet dictatorship and are now saying goodbye after 170 years, is acknowledged by politicians and many simple Russians with demonstrative composure.
Mothers are happy about the closure of the US fast food chain McDonald's because they expect their children to eat healthier now. A young family in a new restaurant on Moscow's Ukrainsky Boulevard laughingly explains that their happiness lies primarily in growing cucumbers, tomatoes, potatoes and pickling mushrooms at their dacha. The tradition of being self-sufficient in canning has never died out. "What more do we need to live? To hell with the sanctions,” says father Denis. The petrol for the trip to the dacha is cheaper than it has been for a long time.
But those who like to go shopping have a harder time. In the shopping centers of the dazzling cosmopolitan city of Moscow, the picture is sometimes dreary due to the many closed shops. Kremlin boss Vladimir Putin only tried again on Thursday to wipe away the possible grief for lost consumer pleasure. "Sometimes you look at the ones who are leaving - and maybe you think: thank God. Now we can fill their niche,” he told the heads of state and government of several ex-Soviet republics at the plenary session of the Eurasian Economic Forum. The incentive for Russia is that its own production has already increased.
Moscow Mayor Sergey Sobyanin has just parried in view of Renault's departure from the capital and announced that the cult brand Moskvich, named after the metropolis in Soviet times, will be revived in the automobile plant. Many companies are forced to write off investments worth billions because business in Russia is hardly possible anymore. Above all, the sanctions in the banking sector are making financial transactions more difficult. The logistics are idle, supply chains are destroyed.
Russia's power apparatus, however, downplays the consequences of the punitive measures. "Those who want to buy luxury goods can continue to get them, but it will be a little more expensive," Putin said at the economic forum. Air traffic to western countries has been discontinued. But if you want to buy an iPhone or a Mercedes, you travel to Russia's neighboring country Kazakhstan.
The ex-Soviet republic in Central Asia is blossoming into a new hotspot and is a heavyweight in the Eurasian Economic Union promoted by Putin. Companies are moving their business there. Kazakhstan assures that it does not want to circumvent the sanctions of the EU and the USA. But the West is concerned about a possible circumvention of the punitive measures. The Moscow tabloid Moskovsky Komsomolets, for example, reports on booming business in Kazakhstan on the car market and gives tips on how buyers can now get a Mercedes or a Porsche in times of shortage. "There is always a way."
Critical voices like those of former Finance Minister Alexei Kudrin, who now heads the Court of Auditors, are rare. The government has no plan to prevent the economy from shrinking by eight to ten percent this year. "I don't see any measures against it today," he complained in Parliament on Wednesday. The restructuring of the Russian economy will take two years until there is growth.
Putin smiles away such concerns or warning words. He also sees the West's "economic war" as an opportunity to emerge victorious in the end. The sanctions should strengthen Russia, not weaken it. The West's policies are causing "economic tremors" and "chaos" worldwide, said the President.