Although the war scenario between Russia and Ukraine in terms of direct confrontation Russia has everything to gain, it is also certain and highly probable that the war will unleash in Russia a progressive deindustrialization that will lead the country to fall behind its political and economic enemies.
According to some international experts, after the beginning of the war against Ukraine, Western states imposed a series of economic and financial sanctions on Russia, which have caused the Russian state to face a progressive deindustrialization that will gradually reduce its wealth and employment levels.
If the above is true, then it is to be inferred that Russia is heading week by week, inexorably, towards a war economy that may leave it far behind the West and China in the coming years.
While the Russian government was able to initially circumvent the sanctions imposed in retaliation for its war in Ukraine, the real crisis threatens to erupt in the coming months if economic changes in Russia's favor do not occur soon.
According to Russian government representatives, even though economic and financial sanctions continue, Russian factories have two to three months of reserves, but they also state that everything will be much more difficult later on.
According to former renowned Russian executives, such as Alexei Portanski, production will not stop completely, however, the problem is that we have entered a regression, production will not be based on modern technology, but on outdated technology, in other words, it will be a process of deindustrialization because there will be technological restrictions due to the sanctions.
Is the war likely to trigger progressive deindustrialization in Russia?.
SOURCES CONSULTED
Nytimes The Woman Steering Russia’s War Economy. Link
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The cover image was designed by the author: @lupafilotaxia, incorporating image: WSJ
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