How “ineffective sanctions” are gradually undermining russia’s production industry
In sverdlovsk oblast, russia, the large novolyalinsky pulp and paper mill is on the brink of closure. Production has been drastically reduced, threatening the jobs of over 700 employees.
The company’s staff has written a letter to the governor asking for assistance, but hopes of saving the mill are slim. The root of the problem, like that affecting the entire pulp and paper industry, lies in the loss of European markets due to sanctions.
After sanctions were imposed, russian pulp and paper companies attempted to shift exports to China and India. However, high logistics costs rendered them uncompetitive, while Indian producers, with cheaper offerings, quickly filled the gap in the European market.
This crisis is not isolated to russia’s paper industry. Earlier, the Center reported on the serious problems faced by the russian coal mining and metallurgy industries due to Western sanctions.
Despite russian propaganda’s claims about the “benefits of sanctions,” “unprecedented economic growth,” and “stability,” reality paints a different picture. Every day, more russians feel the impact of the kremlin’s war of aggression against Ukraine on their own lives and finances.
