Russia’s Economy Enters a New Phase: ‘De-Industrialization’
The war has become like a big sinkhole and into it vanishes the technology needed to stay afloat
The Kremlin has gone all in on the war in Ukraine. Knee-deep in the jaws of defeat, Moscow realizes that victory is not possible so it seeks to maximize the length of the slog and the violence to force an eventual draw. As a result, the entire nation has been reoriented to the war effort.
What has taken place is not just a physical mobilization but also a psychological and emotional one that will take the pariah state far into the future. The odds that it will be a bleak future for the Russian state are high unless China, India, and other countries come to its rescue — which today seems unlikely given that Russia is now being fully run by racist nationalists who would rather live in abject poverty before begging Asians.
Foreign investment in Russia has ended. Russian oligarchs, never ones to invest much money in Russia, have lost so much money due to the sanctions that they just don’t have the cash to invest. Many of the billionaires also don’t have enough confidence in Russia’s future to invest.
The most tragic developments in Russia’s economic situation come down to two simple realities: the government is…
