As Russians return to panic buying after President Vladimir Putin’s invasion of Ukraine, one item remains in abundance: official assurances that everything is under control, according to Bloomberg.
The government makes almost daily claims that staples remain plentiful in an economy plagued by war and wide-ranging international sanctions.
Food? You have nothing to worry about, said Minister of Agriculture Dmitry Patrushev. According to the Ministry of Industry and Trade, diapers and sanitary pads are in abundance. There is no shortage of drugs to reduce fever. As for flour, there is enough of it in St. Petersburg.
But the words don’t seem to reach consumers.
Pressure on prices was already mounting before the war, and global supply chains came under pressure, and now Russians have to contend with the new reality of economic isolation, amassing more-than-usual favorites at the end of the world.
Sugar bags from big companies have been sold out on some sites, replaced by unnamed brands that sell for three times the price. Sanitary products, diapers, pet food and coffee capsules are in the highest demand, and locally produced products from international companies are particularly scarce.
By the end of 2023, Russia will have wiped out 15 years of economic profits by the end of 2023 after its invasion of Ukraine prompted numerous sanctions and forced companies out of the country, according to the Institute of International Finance (IIF).
The economy is expected to contract by 15% in 2022 and then by 3% in 2023, leaving the gross domestic product at the same level as fifteen years ago.