Russia launches plans to mitigate the economic blow of sanctions

The Kremlin yesterday promised drastic economic and social support measures for the country. Without revealing the extraordinary amount mobilized.

Russian resilience plan. Vladimir Putin explained that the state support program announced yesterday in Moscow will begin “in the near future.” The head of state of Russia wants to make this new plan a response to the Western “economic blitzkrieg” against his country.

Even in these external choking situations, Vladimir Putin assures us that our mission to reduce levels of poverty and inequality remains completely “achievable.” And for this purpose, he gives instructions on increasing all social benefits, from minimum self-sufficiency allowances to retirement pensions, and promises to increase pay slips for all workers in the public sector. Did.

No special amount has yet been shown that must be withdrawn from the state’s financial resources, except for assistance to the agricultural sector of around € 220 million (at current rates).But Putin argued that the central bank “wouldn’t need to print money.”“”..

He argues that “we have income, market income, and healthy income. The problem is now we have resources, not money,” and repeatedly mentions the budget and foreign exchange reserves that have been replenished in recent years. increase.

In the Kremlin’s words, the main issues that have become apparent are only related to “accessibility of components, equipment and materials” and then to “new organizations” found by business leaders. In this, the President of Russia is calling on the private sector to find the “necessary solution” within “the greatest entrepreneurial freedom.” The purpose is to significantly change the “structure” of the economy. Logically, the country should relinquish its control over the national economy, which does not seem to be on the agenda in practice.

“Fair” price correction

For the time being, the requirement for political power is the overt control of inflation. Local authorities need to “carefully monitor for unjustified price increases.”Returning to the pilot label as in the past, editorial writer for the Daily Economic Report Kommersant Don’t believe me Anatoly Costilev is demonstrating based on the symptomatic case of a current lack of sugar on the shelves. The Attorney General’s office on Tuesday ordered to find “verification of information” about this increasingly rare item.But economic journalists invite people who are seduced by “fairness”“, “Remember the market mechanism (…), otherwise empty store shelves would be a much more familiar image.”

A study by Russian economists at Sberbank and the NAFI Research Center, published yesterday, shows that food is the only source of ever-increasing household spending, and how much food the population will store for the “difficult times.” Emphasizes what you are doing. Analysts at the Austrian bank RBI examine Russia’s “loss of prosperity” hypothesis, comparable to what Iran suffered after the 1979 revolution, at a facility in Western Europe that has been the most exposed to the Russian market. ing.

The central government is currently working to reassure people about the availability of daily necessities. Yesterday, the Ministry of Industry and Trade announced that there was no risk of running out of menstrual pads and baby diapers, revealing national production and inventory levels … whether Russian families will be convinced in the coming weeks. To decide.

City dwellers have the most to lose

At the same time, the Kremlin believes that the response to such concerns must first come from local authorities. According to Putin, regional leaders can make “operational” decisions that suit their citizens, and a decree to this effect was taken yesterday to give them additional authority.

However, the only recognized experts in Russian economic geography are the inhabitants of the capital, who will most likely feel the greater impact than the inhabitants of deeper nations. Professor Natalia Zoubarevich of Moscow State University claims the fact that per capita income in Moscow is twice that of the whole country.

More generally, in this scholar’s analysis of theorizing the concept of “four Russias”, the villagers who suffer most from the effects of the economic slowdown come, but the city dwellers because they have much to lose. Whatever the measures promised yesterday, it is the overall mode of post-Soviet consumption that collapses for them.

Benauda Abde Dime International columnist