War in Ukraine: Why Russia’s War Economy is Running – Economy


Jan DiesteldorfFrankfort

Need is great in Russia’s industry, but it doesn’t make people inventive. There is a shortage economy. And yet it should somehow continue, with the new Lada Granta Classic, for example, which has been rolling off the assembly lines since mid-June after months of standstill in the factories. From the outside an ordinary compact car, it is technically at the level of the 1970s: the Avtovaz Group builds the model without ABS, the car has neither airbags nor ESP and no power steering. The required chips, sensors and other small electrical components from the West can Russia not replacing fast enough. Western sanctions not only hit Russia’s economy hard, they also revive long-forgotten security risks.

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