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Russia works to avoid a return to Soviet-era scarcity
Gripped by heavy economic sanctions and increasingly isolated from Western suppliers, Russia is working to keep its factories and businesses running and to stave off a return to Soviet-era scarcity. The economic toll, though difficult to quantify, has been felt widely, from its largest companies to its small shops and workers.
As the central bank slashed interest rates, its chairwoman, Elvira Nabiullina, warned that the coming months would be “difficult for both companies and citizens” as the fallout deepened for the Russian economy more than three months into the invasion of Ukraine. Shortages will most likely worsen as sanctions further turn Russia into an economic pariah.
Basic items, including paper and buttons, are in short supply. Prices of consumer goods have been soaring, with the inflation rate rising to 17.8 percent last month before dipping slightly. Sales in the energy sector are projected to fall as European customers begin to pivot away from Russian oil. And airlines, cut off from Western manufacturers, are searching for spare parts.
Quotable: “I call what is happening now a horrible experiment,” said Ivan Fedyakov, who runs Infoline, a market research firm in Russia. “It has never happened in modern history when such a big and deeply integrated country would be so quickly and abruptly fenced off from the global economy.”
Back to basics: The Russian automaker Avtotor announced a lottery for free 10-acre plots — and the chance to buy seed potatoes — so that its employees could grow their own food amid “the difficult economic situation.” The company announced the giveaway after Western sanctions hobbled production at its assembly plant in Kaliningrad.

АДАПТИРОВАННЫЙ ВАРИАНТ

Russia works to avoid a return to Soviet-era scarcity (scarce resources)

Because of heavy economic sanctions and isolation from Western suppliers, Russia is working to keep its factories and businesses running and to avoid a return to Soviet-era scarcity. Both small shops and large companies suffer losses.

As the central bank made the interest rates lower, its chairwoman, Elvira Nabiullina, said that the coming months would be “difficult for both companies and citizens”. Sanctions further turn Russia into an economic outcast.

Basic items, including paper and buttons, are in short supply (only available in small amounts). Prices of consumer goods have been soaring (increase rapidly), with the inflation rate rising to 17.8 percent last month before going down slightly. Sales in the energy sector are projected to fall as European customers begin to refuse from Russian oil. And airlines, cut off from Western manufacturers, are searching for spare (available) parts.

“I call what is happening now a horrible experiment,” said Ivan Fedyakov, who runs Infoline, a market research firm in Russia. “It has never happened in modern history when such a big and deeply integrated country would be so quickly cut off from the global economy.”

Back to basics: The Russian automaker Avtotor announced a lottery for free 10-acre pieces of land — and the chance to buy seed potatoes — so that its employees could grow their own food amid “the difficult economic situation.” The company announced the giveaway after Western sanctions limited production at its assembly plant in Kaliningrad.

NY Times

As Russia Diverges From the Global Economy, Soviet-Style Scarcity Looms

With soaring prices and shortages of basic goods, the Russian people and businesses large and small are feeling the pinch.

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