Thursday, October 3, 2024

Russians Show No Sign of Sanction Fatigue | The Hill

Absolutely stunning article in The Hill - about how "Russians must suffer but they live better than in the EU":

» Two and a half years into their nation’s large-scale invasion of Ukraine, Russians seem to be less affected by the war than they were in 2022. Neither Ukraine’s incursion into the Kursk region nor the most recent Western sanctions seem to be igniting discontent among “ordinary” citizens or the affluent populations of Russia’s largest cities. This comes as a surprise to many Western policymakers and the Russian dissidents who invested some hope in Muscovites and Petersburgers becoming disgruntled with the “war economy,” as such luxuries as Western boutiques, unlimited internet use and even easy weekend trips to European capitals vanish.

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[...] The Western sanctions imposed in 2022 caused a sharp fall in Russia’s capital exports. Almost all the money that would have previously been channeled into luxury European real estate instead started to flow into Moscow, St. Petersburg and their suburbs. Since 2021, the average dollar price of an apartment in Moscow has risen by a staggering 43 percent, and the city government has invested huge efforts into expanding transportation facilities and stimulating private businesses in the service sector to meet growing demand.
[...] In the last ten years, 78 new stations of the Moscow underground were built — more than in the previous four decades —  and the commuter network was integrated into a broader railway system, now resembling the Paris Métro-RER network. The city now has the largest fleet of locally made all-electric buses in Europe, while river electric trams are bolstering Moscow’s transit infrastructure.


[...]
Although Visa and MasterCard suspended their operations in Russia, Russians continue to use Central Bank’s Instantaneous Payments System, which allows the transfer of any amount of money using one’s mobile phone number as an identifier, immediately and without commission. Russia’s capital cities are now ahead of European metropolises in using QR-code payments and facial recognition in financial transactions, and mobile data in Russia remains the cheapest and fastest in Europe. Grocery shops feature the same assortment of goods as before the war, including French wine and Italian confectionary. On the top of that, doorstep delivery of food and goods by autonomous bots is commonplace. 
 
[...] Meanwhile, booming demand is driving up local wages. Moreover, the job offers have been so enticing in recent months that many Russians who left the country at the beginning of the war, are now returning after failing to integrate into European societies. Even Western celebrities like the developmental economist Jeffrey Sachs are starring in glamorous international events like the recent BRICS Urban Future Forum which attracted dozens of mayors of major cities across Asia, Africa and the Middle East. [...] This economic progress, partially caused by the West’s confrontational policy, has undermined the anti-Putin sentiments in the country much more than any other factor. 

The West’s attempt to undermine Russia economically since 2022 has thus produced an opposite result — at least so far
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