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☆ Russia's worker shortage is so bad the economy is leaning on the Soviet-era practice of using prison labor, think tank says
▼ + stars: | 2023-10-25 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Russia is leaning more on prison labor amid a dearth of available workers. AdvertisementAdvertisementRussia's worker shortage is so bad, the nation is increasingly leaning on prison labor to prop up its ailing industries and make up for a lack of manpower. That exceeded estimates that Russia made the year prior, when budget makers anticipated bringing in just 15.8 billion roubles from forced prison labor. "The Kremlin has sought to integrate prison labor with certain sectors of the domestic economy to solve this issue." "The recent uptick in the use of forced prison labor in Russia is not merely the transient trend of a post-COVID, economically troubled, or war-hurt Russia.

Persons: —, Sergey Sukhankin, Sukhankin, Vladimir Putin Organizations: Service, Moscow Times, Russia's Federal, Jamestown Foundation, Jamestown, Soviet Locations: Russia, Soviet, Ukraine

REUTERS/Wu Hong/Pool/File Photo Acquire Licensing RightsMOSCOW/BEIJING, Oct 16 (Reuters) - Russian President Vladimir Putin will travel to China this week to meet Xi Jinping, the Kremlin chief's first trip outside the former Soviet Union this year. What are the five things to watch for at the meeting? Li was sanctioned by the U.S. in 2018 for an arms deal he secured with Russia in an earlier role. Xi also awarded Putin a friendship medal in 2018, saying that "Putin is my best close friend". Putin said in March that he had invited Xi to his private apartment in the Kremlin.

Persons: Xi Jinping, Vladimir Putin, Wu Hong, Li Shangfu, Li, General Liu Zhenli, Putin, Xi, Alexei Miller, Igor Sechin, Maxim Reshetnikov, Guy Faulconbridge, Alison Williams Organizations: Xiamen International Conference and Exhibition Center, REUTERS, Kremlin, Russia, People's Liberation Army, PLA, U.S . Department of Defence, China, United, Gazprom, Reuters, Thomson Locations: Russian, Xiamen, Fujian Province, China, MOSCOW, BEIJING, Soviet Union, U.S, Russia, Xiapu, Ukraine, United States, India, Moscow, Kremlin, Siberia, Mongolia, Asia, Germany

☆ Russia can gain from Middle East turmoil — but it could backfire if the war spirals out of control
▼ + stars: | 2023-10-13 | by ( Holly Ellyatt | ) www.cnbc.com time to read: +8 min

Putin likely wanted to show that Moscow is still important in the Middle East by visiting Iran, said John Drennan of the U.S. Institute of Peace. It could present an opportunity for them but also could present a very, very disastrous outcome for their influence in the Middle East too if the conflict spirals out of control," Ramani said. Analysts also believe Russia will use the war in Israel and Gaza to sow disinformation about Ukraine and discord among its allies. As such, the war between Israel and Hamas also provides Russia with an opportunity to flex its diplomatic muscles in the Middle East, after something of a hiatus from the global stage. So this shows that Russia is not isolated in the Middle East, and Russia still maintains the same array of diplomatic partnerships that it had before the war," he noted.

Persons: Vladimir Putin, Ebrahim Raisi, Putin, John Drennan, Sergei Savostyanov, Samuel Ramani, Ramani, Volodymyr Zelenskyy, Joe Biden, Jim Watson, Volodymy Zelenskyy, Sergei Karpukhin, Benjamin Netanyahu, Maxim Shemetov, They've, they've, Bashar al, Assad Organizations: Getty, Palestinian, Hamas, U.S . Institute of Peace, AFP, Royal United Services Institute, CNBC, Kremlin, Ukraine, Analysts, White, U.S, Congress, NATO, Afp, International Energy Agency, Russia, Israeli, Iraqi Locations: Sochi, Russia, Israel, Gaza, Moscow, Iran, Ukraine, Lebanon, Syria, Iraq, U.S, Europe, Washington ,, Brussels, Russian, OPEC, Turkey, Egypt, Tehran

☆ Putin has bet Russia's entire economy on war. An expert says it's his best shot at maintaining control of the country.
▼ + stars: | 2023-10-07 | by ( Katherine Tangalakis-Lippert | ) www.businessinsider.com time to read: +5 min

Vladimir Putin bet his economy on a long war, ramping up military production and raising wages. An expert told Insider keeping Russia's economy stable is critical to prevent regime collapse. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementAdvertisementVladimir Putin has fully transitioned the Russian economy toward wartime production, betting his country's financial and manufacturing systems can outlast the West's until Russia sees a military victory in Ukraine. As long as the country maintains some semblance of the status quo in the economy, English said he doesn't expect to see things changing.

Persons: Vladimir Putin, Robert English, —, Putin, Vasily Astrov Organizations: Service, Kremlin, Street Journal, Vienna Institute for International Economic Studies, ., Government of, Russian Federation, University of Southern Locations: Russia, USSR, Ukraine, Russian, University of Southern California

☆ Russian ruble weakens past symbolic threshold of 100 against the dollar
▼ + stars: | 2023-10-03 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

A woman looks at a board showing the rates of dollars and euros against the ruble in front of the exchange office on February 19, 2023, in Moscow, Russia. Russia's economy is beginning to feel the weight of Western sanctions, following the start of the war against Ukraine. The Russian ruble weakened beyond a symbolic threshold of 100 to the U.S. dollar in the early hours of Tuesday as foreign currency outflows and a shrinking balance of trade continue to weigh on the currency. The ruble recovered slightly through the morning, and was hovering just above 99.5 versus the greenback by around 8 a.m. London time. When the ruble last weakened into triple digits in August, the Bank of Russia called an emergency meeting to hike interest rates by 350 basis points to 12%.

Persons: Vladimir Putin's Organizations: Ukraine, U.S, Bank of Russia, Bank of Locations: Moscow, Russia, London, Russian, Bank of Russia

☆ UBS says reports of DOJ probe into Russia sanctions evasion are wrong
▼ + stars: | 2023-09-30 | by ( Eva Rothenberg | ) edition.cnn.com time to read: +2 min

“The recent reporting on an alleged probe by the US Department of Justice into sanctions-related compliance failures at Credit Suisse and UBS is inaccurate. We’re not aware of such a probe,” UBS told CNN in a statement. “UBS and CS have significantly and proactively reduced their Russia-related exposure.”According to a person familiar with the matter, UBS has been in touch with the DOJ regarding the reported probe. The bank’s reaction comes on the heels of a Bloomberg report, which cited anonymous people familiar with the matter and asserted the Justice Department had briefed lawyers for UBS (UBS) about Credit Suisse’s alleged involvement in sanctions violations. CNN reached out to the Justice Department for comment but has not received a response.

Persons: “, Suisse’s, Drew Sullivan, ”, ” Sen, Ben Cardin Organizations: CNN, UBS, US Department of Justice, Credit Suisse, “ UBS, CS, DOJ, Bloomberg, Department, Justice Department, Swiss Bankers Association, Security, Cooperation, US, US Helsinki Commission, “, Swiss Stock Exchange Locations: Swiss, Russia, Europe, US Helsinki, Ukraine, Maryland, Switzerland

☆ The Russian culture ministry is blaming a pirated version of the Barbie movie for weakening nationwide values
▼ + stars: | 2023-09-29 | by ( Sebastian Cahill | ) www.businessinsider.com time to read: +2 min

A pirated version of the "Barbie" movie made its way to Russia, and officials there aren't happy. The Russian Culture Ministry wants to shift from Western values towards "traditional" Russian ones. AdvertisementAdvertisementAs Russian citizens struggle to maintain morale during the ongoing invasion of Ukraine, the Russian Culture Ministry is taking a shot at the "Barbie" movie as a representation of hated Western ideologies. Multiple offices and politicians are criticizing the "Barbie" movie for not promoting "traditional Russian values" — a vague phrase that seems to refer to patriotism and general conservatism — per the BBC. But what comprises appropriate, patriotic entertainment, then, free of Western values?

Persons: —, Barbie, Steve Rosenberg, Maria Butina, Butina, Rosenberg, Vladimir Putin Organizations: Russian Culture Ministry, Service, BBC Locations: Russia, Ukraine, Russian

☆ An oligarch who predicted that Russia may run out of money next year is surprised the economy has held up so far
▼ + stars: | 2023-09-26 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Oligarch Oleg Deripaska told the FT he was surprised at Russia's economic resilience. Deripaska, who is worth $2.3 billion, said demand from the global south is supporting Russia's economy. It's an about-turn for Deripaska, who, in March, said sanctions-hit Russia may run out of money next year. Anton Siluanov, the country's finance minister, told the CGTV channel last month he expects the Russian economy to grow by at least 2.5% this year. "Out of the next billion people who're about to be born, 70% will be in this region," Deripaska told the FT. "Let's face reality.

Persons: Oligarch Oleg Deripaska, Deripaska, —, oligarch Oleg Deripaska, It's, Anton Siluanov, it's Organizations: Service, Financial, New York Times, International Monetary Fund, US, European Union, Russia Locations: Russia, Ukraine

In short, Russia’s children are being prepared for war. Education Minister Sergei Kravtsov said recently that there are now about 10,000 so-called “military-patriotic” clubs in Russian schools and colleges, and a quarter-of-a-million people take part in their work. There are mandatory classes on military-patriotic values; updated history books accentuate Russian military triumphs. President Putin has personally led the campaign to inject patriotism into Russia’s schools. That message - hammered home by the president and state media - is now being taken into Russia’s schools.

Persons: Sergei Kravtsov, Vladimir Putin, ’, ”, ” Putin, Ukraine “, Putin, “, Vyacheslav Gladkov, Uliana Shumelova, schooler, Sergei Shoigu, Shoigu, Daria, Vladimir, Ukraine –, Buryatia, She’d, It’s Organizations: CNN, Education, Security, Defense, Education Ministry, Novosti, RIA Novosti, Russia, Kremlin, Educational, Ministry of Defense, Air Defense, United, ”, Northern Military District, Military Sports Games, Defense Ministry, Armed Forces Russian Federation Locations: Pacific, Ukraine, Moscow, Russian, Russia, Crimea, Ukrainian, stoke, Belgorod, Krasnodar, Vologda, Sakhalin, Russia’s Far, Yeysk, Azov, Astrakhan, United Russia, Vladivostok, Voronezh, Ussuriysk, Buryatia, Chita trumpeted, Orenburg, Polish, Perm, State

☆ Russia's economy is headed for stagnation as the path of monetary policy is being chosen 'very poorly,' economists say
▼ + stars: | 2023-09-21 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Russia's economy is stumbling and could be headed for stagnation, economists said. Higher rates can help achieve those goals by tightening financial conditions, but that spells bad news for the rest of Russia's economy, which is already struggling. Russia's economic situation ran into trouble not long after it began its "special military operation" in Ukraine early last year. Prices could fall to just 5.6% in September, the center's economists forecasted, still around 1.5 times Russia's 4% targeted inflation rate. Western scholars and researchers, meanwhile, say that under-the-radar statistics of Russia's economy show a far weaker picture of Moscow's finances than Putin has let on.

Persons: Putin Organizations: Service, Russian Center Locations: Wall, Silicon, Ukraine, Russia

☆ Russia's trade with the US plummets to a 3-decade low while its commerce with China surges toward a record $200 billion
▼ + stars: | 2023-09-20 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

Russia's trade with the US has hit a 30-year low amid Western economic sanctions against Moscow. Meanwhile, Russia's trade with China is on track to hit an all-time high of more than $200 billion. The Eurasian nation's trade with the US plunged to a three-decade low in July, while its commerce with China is on track to hit an all-time high of more than $200 billion this year. Russia's trade with China is set to surpass the $200 billion milestone this year, according to the minister of economic development Maxim Reshetnikov, per a local Russian news outlet. However, Russia's oil and gas trade now appears to be making something of a comeback after a year of pain, thanks to a rally in global oil prices.

Persons: Vladimir Putin, Maxim Reshetnikov, Reshetnikov Organizations: Moscow, Moscow . Commerce, Service, United States Census Bureau, Motors, Ford, Mercedes, Benz, RBC Locations: Moscow ., China, Wall, Silicon, Ukraine, Russia, Moscow, Russian

☆ Russia Ramps up Output of Some Military Hardware by More Than Tenfold - State Company
▼ + stars: | 2023-09-19 | by ( Sept. | At A.M. | ) www.usnews.com time to read: +1 min

MOSCOW (Reuters) - Russia has ramped up the production of some military hardware by more than tenfold to supply its army in Ukraine, significantly increasing the output of missiles, drones, combat vehicles and artillery, Russia's biggest weapons producer said on Tuesday. And for some types of hardware, output had been boosted "by tens of times," said Ozdoev. Rostec, which is sanctioned by the West, is run by Sergei Chemezov, a close Putin ally. It controls 800 Russian civilian and defence entities and is by far Russia's biggest arms producer. The U.S. Treasury calls Rostec "the cornerstone of Russia’s defense, industrial, technology, and manufacturing sectors."

Persons: Vladimir Putin, Ozdoev, Sergei Chemezov, Putin, Rostec, Guy Faulconbridge, Andrew Osborn Organizations: U.S . Treasury Locations: MOSCOW, Russia, Ukraine, Moscow, Rostec, Russian, U.S

Chinese President Xi Jinping and Russian President Vladimir Putin attend a presentation of a Haval F7 SUV produced at the Haval car plant located in Russian Tula region, at the Kremlin in Moscow, Russia, June 5, 2019. Nikolai Patrushev, a close Putin ally and the secretary of Russia's Security Council, said Russia and China should deepen cooperation in the face of the West's attempt to contain them both. Putin will attend the third Belt and Road Forum after an invitation by Xi during a high-profile visit to Moscow in March. Putin has pivoted towards China, and Xi has stood by him. Putin last visited Beijing in February 2022, days before the invasion, where he and Xi announced a 'no limits' partnership.

Persons: Xi Jinping, Vladimir Putin, Maxim Shipenkov, Putin, China's Xi Jinping, Putin's, Nikolai Patrushev, Wang Yi, Xi, Maxim Reshetnikov, Reshetnikov, William Burns, Guy Faulconbridge, Kevin Liffey, Christina Fincher Organizations: Kremlin, ICC, Security, Criminal Court, Cuban Missile Crisis, CIA, Reuters, Thomson Locations: Russian Tula, Moscow, Russia, China, MOSCOW, Beijing, Ukraine, CHINA, RUSSIA, Russian, United States

☆ Ukraine's drone campaign plans to exhaust Russia's air defenses, disable its bombers, and damage military production, says spy chief
▼ + stars: | 2023-09-18 | by ( Tom Porter | ) www.businessinsider.com time to read: +3 min

Ukraine's head of defense intelligence discussed his military drone campaign with The Economist. He said Ukraine is targeting air defenses, military sites, and military production facilities. In a wide-ranging interview with The Economist, Lieutenant-General Kyrylo Budanov, outlined his three main objectives for Ukraine's drone strikes against Russia. Meanwhile, drone attacks in the Russian capital are causing frequent disruptions at Moscow's main international airport. Budanov in the interview rejected criticisms that the attacks could escalate the war and said Ukraine was not targeting Russian civilians.

Persons: Kyrylo Budanov, Budanov, ALEXANDER NEMENOV Organizations: Service, Russia, Moscow International Business, Getty, West, Drones, Economist Locations: Ukraine, Crimea, Wall, Silicon, Moskva City, Moscow, AFP, Russia, Sevastopol, Tver

MOSCOW (AP) — The Central Bank of Russia raised its key lending rate by one percentage point to 13% on Friday, a month after imposing an even larger hike, as concerns about inflation persist and the ruble continues to struggle against the dollar. The increase comes as annualized inflation rose in September to 5.5% and the bank said it expected it would reach 6%-7% by the end of the year. "Therefore, it is required to additionally tighten monetary conditions.”The bank in August increased the lending rate to 12% — a jump of 3.5 percentage points — as the ruble fell to 100 against the dollar. Although the ruble's exchange rate improved mildly after the rate hike, it remains around 95 to the dollar, significantly weaker than a year ago when it was trading at around 60 to the U.S. currency. Importing more and exporting less means a smaller trade surplus, which typically weighs on a country’s currency.

Organizations: MOSCOW, Central Bank of Russia Locations: Russian, Russia

The Pentagon has provided Patriot air defense systems and cajoled allies to provide S-300 air defense ammunition, both of which have proven effective. It has also provided other air defenses like the Avenger system and the Hawk air defense system. But Ukraine does not have enough air defense systems to cover the entire country, and must pick the sites it defends. Today, Russian officials have remade their economy to focus on defense production. As a result, military production has not only recovered but surged.

Persons: Russia’s Organizations: Pentagon Locations: Moscow, Russia, Kyiv, Ukraine, United States, Washington

☆ More trouble for the Russian economy ahead: It just significantly raised its inflation forecast, despite Putin saying price hikes are hurting businesses
▼ + stars: | 2023-09-13 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Russia's economy ministry has raised the country's 2023 inflation forecast from 5.3% to 7.5%, per TASS. Russia's economy and the ruble's value have been hit by the war in Ukraine, driving up inflation. Russian President Putin said on Tuesday high inflation is making it "practically impossible" for businesses to make plans. Russian inflation accelerated 5.15% year-over-year in August, well above the central bank's 4% annual inflation target. Analysts polled by Reuters are largely expecting Russia's central bank to hike rates again later this week to support the ruble and tame inflation.

Persons: Putin, Vladimir Putin isn't Organizations: Service, TASS, Ukraine, Moscow, Eastern Economic, Reuters, Kremlin Locations: Ukraine, Wall, Silicon, Russian, Vladivostok

☆ The EU should have ‘isolated’ the Ukraine war, Hungarian foreign minister says
▼ + stars: | 2023-09-13 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: +2 min

Hungary's Foreign Minister Peter Szijjarto. Thierry Monasse | Getty Images News | Getty ImagesThe European Union should have "isolated" the Ukraine war, Hungary's foreign minister told CNBC in an interview broadcast Wednesday. The "European Union should have isolated this war in Ukraine, but instead of that [the] European Union has globalized the war," Péter Szijjártó said from the Belt and Road Summit in Hong Kong. The European Union did not immediately respond to CNBC's request for comment. This is not the first time Hungary's foreign minister has condemned the EU's handling of Russia's full-scale invasion of Ukraine.

Persons: Peter Szijjarto, Thierry Monasse, Péter Szijjártó, Szijjártó, they're Organizations: Hungary's, Getty, CNBC, European, East, European Union, Russia, Economic, Initiative Locations: Ukraine, European Union, Hong Kong, Brussels, Russia, Russian, Davos, Europe, China

☆ Vladimir Putin says that inflation in Russia is making it 'practically impossible' for businesses to plan
▼ + stars: | 2023-09-12 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Inflation in Russia makes it nearly impossible for businesses in the country to plan, Vladimir Putin said. Still, Putin brushed off longer-term concerns for the Russian economy, adding that its problems were not "insurmountable." The president spoke at Russia's Eastern Economic Forum on Tuesday, touching on the economic problems that the nation was currently facing. Prices that high make the economic environment extremely uncertain for businesses in the nation, Putin said, per Reuters. Experts and observers say that Russia's economy has been significantly hobbled over the past year by western sanctions and the costly invasion of Ukraine.

Persons: Vladimir Putin, Putin Organizations: Service, Economic, Reuters Locations: Russia, Wall, Silicon, That's, Ukraine

☆ Putin signals he expects long war in Ukraine, is not betting on Trump
▼ + stars: | 2023-09-12 | by ( ) www.reuters.com time to read: +4 min

Russian President Vladimir Putin chairs a meeting with members of the Security Council at the Novo-Ogaryovo state residence outside Moscow, Russia April 7, 2022. For there to be any chance of talks, said Putin, Ukraine would first have to cancel its self-imposed legal ban on peace talks and explain what it wanted. "The will be no fundamental changes in the Russian direction in U.S. foreign policy, no matter who is elected president," Putin said. The West's decision to supply Ukraine with cluster bombs and depleted uranium munitions was a crime, he said. He also criticised the West's decision to supply Ukraine with F-16 jets and any possible U.S. supply of Army Tactical Missile Systems (ATACMS).

Persons: Vladimir Putin, Mikhail Klimentyev, Putin Putin, Putin, Donald Trump, Kim Jong Un, Biden, Guy Faulconbridge, Andrew Osborn, Angus MacSwan Organizations: Security, Sputnik, REUTERS, rearm, Russian, Kremlin, U.S, North, Army Tactical Missile Systems, Reuters, Thomson Locations: Moscow, Russia, Kremlin, Kyiv, China, VLADIVOSTOK, Ukraine, rearm, Washington, Pacific, Vladivostok, Russian, Ukrainian, Crimea, United States, U.S, Asia, Beijing

☆ Russia ramps up artillery production but still falling short, Western official says
▼ + stars: | 2023-09-09 | by ( ) www.reuters.com time to read: +3 min

The official, who spoke on condition of anonymity, estimated Russia fired between 10 million and 11 million rounds last year in Ukraine. "If you expended 10 million rounds last year and you're in the middle of a fight and you can only produce 1 to 2 million rounds a year, I don't think that's a very strong position." Other Russia investments in its defense sector may also allow Moscow to produce close to 200 tanks a year, double some previous Western estimates, the official said. The Western official said those negotiations were likely aimed at securing artillery and demonstrated Moscow's desperation in Ukraine. The U.S. government has provided more than $43 billion in weaponry and other military aid to Ukraine since the Russian invasion began last year.

Persons: Gleb Garanich, they've, you've, Sergei Shoigu, Shoigu, Phil Stewart, Cynthia Osterman Organizations: REUTERS, Rights, Russian, Republican, Thomson Locations: Ukraine, Kyiv, Russia, Moscow, Washington, North Korea, Pyongyang, Russian, U.S

☆ China is eroding Russia's influence over old allies as the alliance it leads crumbles over Ukraine, expert says
▼ + stars: | 2023-09-07 | by ( Sinéad Baker | ) www.businessinsider.com time to read: +6 min

Russian influence is waning despite formal alliances and the old ties of the Soviet Union. It is also home to most members of the Collective Security Treaty Organization (CSTO): Russian President Vladimir Putin's equivalent of NATO. Russia's influence on them is also being weakened by more countries competing for their attention, Graham said. AdvertisementAdvertisementHe said that "Russia's operation in Ukraine is undermining, eroding its ability to maintain its influence across the former Soviet space." "You're seeing the slow erosion of Russian influence."

Persons: Thomas Graham, Vladimir Putin's, Graham, Vladimir Putin, Xi Jinping, Stanislav Zas, Nikol Pashinyan, Alexander Lukashenko, Kassym, Tokayev, Sadyr Japarov, Emomali Rakhmon, Anton Novoderezhkin Organizations: Service, Yale, Collective Security, Organization, NATO, Moscow REUTERS, Russia, Armenian, Kazakh, Kremlin, Sputnik, REUTERS, Central, AFPTV, Getty Locations: Central Asia, Russia, Soviet Union, Ukraine, Wall, Silicon, China, Turkey, East, Caucasus, Moscow, Armenia, Kazakhstan, Belarus, Kyrgyzstan, Tajikistan, Central, Europe, Iran, Russian, Belarusian, Bakhmut, AFP, Azerbaijan, Soviet

WASHINGTON (AP) — Treasury Secretary Janet Yellen is facing growing skepticism from some leading rich and developing nations as the residual impact of sanctions against Russia is deepening divisions among the Group of 20 countries. Russia and China, meanwhile, have declared a “no limits” partnership of their own. And the economic bloc of Brazil, Russia, India, China and South Africa — known as BRICS — is trying to increase its use of local currencies instead of the U.S. dollar. Russia is hoping it can use its power over Ukraine’s Black Sea exports as a bargaining chip to reduce Western sanctions. That may be difficult as G20 nations increasingly gravitate into blocs and with some leaders, including Chinese President Xi Jinping, opting to skip the summit.

Persons: Janet Yellen, —, Joe Biden, Yellen, Vladimir Putin, Putin, Rachel Ziemba, ”, Xi Jinping, Josh Lipsky, Lipsky, Xi, Mark Sobel, ” Sobel, Ziemba Organizations: WASHINGTON, —, U.S ., West, Center, New, New American Security, Treasury Department, International Fund for Agricultural Development, GeoEconomics, Fund, Center for Strategic, International Studies, U.S, New Development Bank, Monetary Fund, World Bank, ”, European Union Locations: Russia, India, U.S, Moscow, Ukraine, United States, China, Brazil, South Africa, New Delhi, New American, Argentina, Australia, Britain, Canada, France, Germany, Indonesia, Italy, Japan, Mexico, Saudi Arabia, South Korea, Turkey

☆ Russia's massive brain drain is ravaging the economy - these stunning figures show why it will soon be smaller than Indonesia's
▼ + stars: | 2023-09-03 | by ( Filip De Mott | ) www.businessinsider.com time to read: +4 min

Russia's war on Ukraine has fueled a massive brain drain that will hobble Putin's economy. Russia's GDP, as measured by purchasing power parity, will fall behind Indonesia's in 2026. "But Russia's slide and Indonesia's ascent are both driven in large part by the same thing: people. Russia is suffering from acute brain drain while Indonesia's labor force is growing," the Council wrote. Not only is Indonesia's labor force increasing, but the influx of highly skilled workers has helped boost private consumption standards in the country, it added.

Persons: Vladimir Putin, That's, would've, Putin, Indonesia's Organizations: Service, Workers, French Institute of International Relations, Kremlin, Atlantic Council Locations: Ukraine, Russia, Indonesia's, Wall, Silicon, Russian, Soviet, Indonesia, China, Beijing

That’s almost three times what Russia spent on defense in 2021, before its full-scale invasion of Ukraine in February 2022. Those figures are likely to underestimate the total spent on Russia’s war effort. He said that before the war Russia would typically splash around 3-4% of its annual gross domestic product on defense but now it could be anywhere between 8% and 10%. Russia’s exports are still greater than the value of its imports, despite a boost to the latter from the hefty military spending. Rising military spending is, on the other hand, boosting Russia’s industrial output and, with it, GDP.

Persons: London CNN —, Vladimir Putin, Putin, That’s, Richard Connolly, Janis Kluge, Irina Okladnikova, Liam Peach, it’s, Peach, Kluge, “, ”, —, Maksim Konstantinov, Alexandra Suslina, Suslina, Alexandra Prokopenko, Prokopenko, — Anna Cooban, Tim Lister, Olesya Dmitracova Organizations: London CNN, Reuters, Stockholm International Peace Research Institute, Royal United Services Institute for Defence, Security Studies, German Institute for International and Security Affairs, Capital Economics, CNN, “, ZUMA, International Monetary Fund, Carnegie Russia Eurasia Center, International Energy Agency, West Locations: “, Ukraine, Russia, Stockholm, Moscow, “ Russia, Russian, Saint Petersburg, Soviet, Berlin

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