The Russian economy is holding up…for now

by time news

2024-03-17 11:45:18

Here we must give way to Marcel Proust: the “although” are often “because” that we ignore, the famous prose writer tells us. It is not despite the war that Russia resists, but thanks to the war. At the cost of a tremendous shift of financial and human resources towards the military production apparatus, which is operating at full capacity, in particular the factories in the Ural region. A distortion of the economy to the detriment of traditional sectors, which on the contrary suffer from a shortage of resources. Automobile production has thus been divided by four, with only local and Chinese manufacturers remaining after the departure of Westerners. Agriculture is struggling due to lack of tires for tractors. Household consumption shifted to local, ersatz products, as in times of war. Transport and energy infrastructure is deteriorating due to lack of maintenance and spare parts.

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