March 22, 2022

Panic! At the Grocers


Panic! At the Grocers
A Russian supermarket in 2014... with fuller shelves. Flikr, flowcomm

The deeper the Russian army goes into Ukraine, the higher the prices get in Russian stores, as economic sanctions take their full effect.

The Kremlin has begun urging citizens to not become panicked when they see the stores running out of the usual goods, such as sugar and toilet paper, and that the desire to run out and purchase these goods right away is only an emotional response.

With the combination of the fall of the ruble and closed airspace, the import of goods and foods has been severely hindered. And despite Russia being a net exporter of sugar, the prices have risen 15% in the last week and shortages have been reported in a number of cities. This is despite the fact that Russians were assured by Agriculture Minister Dmitry Patrushev that “sugar deliveries are going on without interruption and factories are working round-the-clock.” 

All this is to say that sanctions are doing their job, as difficult as it is for the common Russian.

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World oil prices are plummeting, the ruble is in free fall, the Russian economy is on the brink of a recession, inflation is climbing, and the Russian Central Bank’s benchmark interest rate has jumped to 17 percent. Meanwhile, President Putin still has popularity ratings in the 80 percent range and there is, seemingly, no panic in the streets of Moscow. What is going on? What is Putin’s game? 
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