Russian Consumers, Firms Feeling Impact of Sanctions as Ruble Keeps Diving
Ordinary Russians are increasingly starting to feel the bite of Western-led sanctions, media reports from inside the country have indicated.
The ruble fell once again today and, at the time of writing, is worth around USD 0.0090, or 26% less than on the day of the invasion of Ukraine (February 24).
Kommersant reported that the number of people visiting restaurants in Moscow had plummeted since the start of what Russia has called “military operations in Ukraine.” In the period February 24 to March 1, footfall in restaurants dropped by up to 50%, with revenues for many chains dropping 20%-70%. One restaurant chain owner opined that “for Russians, going to a restaurant in the current situation feels inappropriate.”
Beauty salons have also seen a massive decline in trade, although “the flow of customers to fast-food restaurants” has increased, with Burger King Russia telling the media outlet that it had “recorded double-digit growth in revenue and traffic in the last week compared to the same period in 2021.”
Footfall at shopping malls is also on the up, with many apparently desperate to spend their ruble savings on electronic goods and other items that could retain their value in the event of an economic crash.
Wine and spirits prices are on the march, the same media outlet reported separately, with some producers that make use of imported distillates reportedly raising prices by as much as 30%.
Meanwhile, president Vladimir Putin has signed decrees aimed at fighting the economic fire, including measures that allow banks to limit and block the withdrawals of cash and other assets to overseas accounts.
Novaya Gazeta wrote that the decrees stop Russian residents “from transferring foreign currency under loan agreements, crediting
Read more on cryptonews.com
