Russian economy panic in catastrophic understaffing and ‘mass bankruptcies’

Russian economy panic in catastrophic understaffing and ‘mass bankruptcies’

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An acute shortage of labor grasps various sectors of the Russian economy, while Moscow continues to channel his efforts for the war in Ukraine. The Center for Countertering DESininformation (CDD) under the National Security and Defense Council of Ukraine showed that the construction sector was particularly affected.

It said: “Such a problem is observed in the industry, the agricultural sector, energy, etc. But the urban construction suffers the most from staff shortage. According to Russian experts, there will simply be no one to build houses in Russia in five to seven years.” The CCD pointed out that the large-scale invasion has created a massive exodus of employees in the war effort and defense industry, exaggerating understaffing in many areas.

It added: “In construction, the shortage of employees is the most acute – even despite the unprecedented market drop, reducing building volumes, mass bankruptcies of developers and job losses.”

Despite the Russian propaganda and guarantees of Vladimir Putin with regard to “unprecedented growth” within the economy, this is not the reality, the watchdog said.

Every day the war pushes Moscow closer to the edge of a serious financial crisis, it added.

Earlier reports of the Ukraine -Ministery of Economy emphasized that sanctions also dramatically battered the Russian budget, with a deficit of 90% of the annual projection after just five months to 2025.

Russia is also confronted with a “food catastrophe” after grain harvests have fallen by 12.7 million tonnes in the period up to July.

Data from the Ministry of Agriculture showed that grain and legumer harvests were only 3.8 million tonnes in the first six months of the year.

This is 4.3 times less than for the same period in 2024 (16.5 million tons), according to Roman Nekrasov, a high factory officer growing at the ministry.

The grain yields would also have fallen by no less than 25%. The yield was placed at 31 centers per hectare (C/HA), which is 10 C/hectares lower than last year (41c/ha).

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