When Vladimir Putin announced the invasion of Ukraine, the war seemed far from Russian territory. But within days the confrontation came home – not with cruise missiles and mortars but in the form of unprecedented and unpredictable barrages of sanctions by Western governments and economic punishment by corporations
Three months after the Russian invasion of Ukraine on February 24, many Russians are suffering, Moscow’s huge shopping malls have become spaces of ‘occupied’ shop windows by Western retailers.
McDonald’s – which opened in Russia in 1990 was a cultural phenomenon, a glittering modern convenience that came to a gloomy country caused by limited possibilities – recently left Russia completely in response to its invasion of Ukraine. IKEA, the epitome of affordable modern comfort, is closed until further notice. Large industrial companies, including oil giants BP and Shel’s and carmaker Renault, have left Russia, despite their huge investments in Russia. The fuel company ‘Shel’ estimated that it would lose about $ 5 billion in an attempt to get its assets out of Russia.
As the multinational corporations left, thousands of Russians who had the economic means to do so also fled, fearful of new war-related government moves, young people may have fled for fear the Kremlin would impose a conscription law to feed its war machine. This was reported by the AP news agency.
But the escape has become much more difficult than it once was – 27 EU countries, along with the United States and Canada, have banned flights to and from Russia. To the Estonian capital Tallinn, once an easy destination for a long weekend a 90-minute flight from Moscow, it suddenly takes at least 12 hours to reach a route via Istanbul.
Even the internet and social media have shrunk for the Russians. Russia has banned Facebook and Instagram – though it can be circumvented by using VPNs – and has closed access to foreign news sites, including the BBC, US-funded Voice of America and European / Free Radio Radio Liberty Radio and the German broadcasting corporation DW.
After authorities in Russia handed down a law calling for a sentence of up to 15 years in prison for articles that included “fake news” about the war, many independent media outlets closed or suspended operations. These included Dmitry Muratov who received the Nobel Peace Prize last year. If the war continues, more companies could leave Russia. On the other hand, those companies that have only suspended their activities may renew them if a ceasefire agreement or a peace agreement with Ukraine is reached, but the window may close.
But in terms of economic activity, “it’s a completely different story,” said Chris Wiper, a veteran analyst at Russia’s Economy: “They are full, the lights are still on. They are just not open. So they have not retired yet. They are waiting to see what happens next,” he explained.