Russia's Economy is F***ed: Here's 3 Reasons Why

Russia's economy has been struggling since the invasion of Ukraine, but the recent weeks have been increasingly difficult. So in this video we outline 3 reasons why the Russian economy is dying and the major issues they face.

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[mlister]

I think you missed a 4th reason: The mobilization of workers themselves. Supposedly 300, 000 men were mobilized. Many of whom will have been pulled from jobs, leaving their employers in the lurch. This could bring a production line to a hault, or cause all kinds of delays, as there was no time to plan around staff leaving.

[LuniFoxo]

Western Ukrainian here. When I first heard the news about the Ruble coming back up and even having it's price higher than ever, I honestly was devastated. All that I could ask myself is "how are they doing this?" and "why are they so stubborn?" This pretty much continued until autumn, when the current events started to unfold. Now pretty much everyone is talking about how Russia's economy is dipping because they're running out of resources to keep themselves up and because of brain drain. To say that I'm happy for these news is an understatement.
In other news, Ukraine is still experiencing very frequent blackouts, some areas not having electricity for up to 3 days. However I'm sure everything will pass and we'll survive the winter.
Thanks for reading my messages everyone, I really appreciate your support <3

[HastolNafor]

Kudos to your editor/graphics person. I find the animations impactful and stimulating.
I imagine a lot of hard work goes into generating them.

[tomlxyz]

Imagine if Putin spent all that money on improving Russia for the average person instead of waging a war

[afh]

Russia is providing a real-time example of a country doing wish fulfilment at scale. It's also demonstrated the paradox of authoritarian regimes: they are powerless to course correct when reality won't bend to their will, and given the whole government relies on lying, cannot pivot to a new policy without undermining themselves. 2023 will be interesting.

[liuxiangcheng]

The Russian economy has fallen to the 1st place in Europe and to the 5th in the world according to the bank, according to the World Bank.

[ronissi_sini]

No economy can survive such a connected world with being closed to basicly most foreign markets

[NotContinuum]

"Russia's oil exports to Europe have gone down."

Well, that's going to happen when you shut down all your pipelines into Europe.

[Vasiliy]

From the creators of "200 rubles for 1 dollar" and "'they have ammo only for 1 week"

[Blaize]

It's not just human capital flight from Russia - they're also killing a *lot* of their own on the front lines. Russian demographics aren't good from an economic perspective even before the war started: it's going to be pretty catastrophic in a few years.

[aslkdfjhg]

"In Russia things don't get more expensive, they just disappear"

- late relative who lived in the USSR

[underdog]

Very good points, and as a reader pointed out, a 4th reason is the loss of workers to conscription. All those reasons will impact the money coming in, the money going out is also increasing to finance a bigger army, buy very expensive components in the black market, and increase internal security to deal with unrest as the consequences of conscription become clear.

[petterbirgersson]

Just imagine if Russia had used it's budget surplus to improve their own infrastructure instead of wasting it on the war. What a different world we could have been living in.

[ohidontknow]

When Russia stops publishing financial data then its not cos they're doing great

[ianhigh]

Extremely well presented and easy to follow.
I was making these exact same points back in March although I had not considered the loss of manpower due to mobilisation and exodus of Russian males.
My arguments back then was sanctions would take six months to a year to bite and it was a trade-off between a number of factors; Russian ability to find new suppliers and markets, Russian ability to stave off internal unrest due to internal inflation and lack of imports, ability of the West and especially Europe to continue support for Ukraine irrespective of hardships due to inflation and energy prices, ability of Europe to find alternatives to Russian energy - and, of course, Ukraine's ability to withstand Russian military forces.

At the moment everything seems to be going as the West's 'game plan' expected. Ukraine is holding out militarily (and even making gains), Europe's population is upset at drop in living standards, inflation and worries about energy debt but most countries seem to have taken action to limit the worse effects and support for Ukraine is still at very high levels. Support seems to be wavering a bit in the USA but is still strong and calls for dropping support seem to be more about internal politics.
The only concern at the moment is the new Russian strategy of trying to freeze Ukraine by destroying the electrical grid. If this can be thwarted then the next six months should result in a total Russian defeat.

[tobiwan]

The budget surplus was only possible due to additional taxes in Russia. Also all the equipment losses of the war are much much higher than the Russian surplus of the last years. It will probably eat up most of their reserves to rebuild the Army even if they stopped the war now.

[AchyutChaudhary]

Fun fact: 🇷🇺Russia has a SMALLER economy than 🇰🇷South Korea! 😂

…and with a population smaller than 🇧🇩Bangladesh (despite being 100 x times bigger) & a war being fought, I can’t help but think Russia’s economy getting even worse.

[gideonmele]

2022: everyone’s economy is screwed
Russia: Challenge accepted
Everyone: wait, what?

[tannisroot]

An important note here is that since the invasion, Russian Urals oil hasn't traded at the price of Brent. Due to lots of traders avoiding buying from Russia, those willing to would only buy it at a heavy discount, something like brent oil price minus 25 dollars.
Also to note - Russia is selling gas to China at a loss, something like 290$ per 1k of cubic meter of gas, several times lower than market prices in Europe.

[takezokimura]

Russia: Gas is one our greatest revenue and we use the profit to continue the war effort.
Also Russia: We will stop selling Gas to Europe as blackmail to help the war effort!
*Stops trades but countries continue to support Ukraine*
Russia: *Surprised Pikachu face*