How the Kremlin Is Destroying Russia’s Industry
According to official statistics, russia’s industrial production growth rate in February dropped to a meager 0.2% year-on-year. This figure is 11 times lower than in January (2.2%) and 29 times lower compared to the fourth quarter of last year (5.9%).
As of today, even these discouraging statistics are sustained solely by the defense-industrial complex, which continues ramping up production to meet the needs of the war against Ukraine. Meanwhile, civilian sectors of industry—such as clothing and food production—are sliding into recession.
russia’s industry is suffering from sanctions and the central bank’s tight financial policy. Companies are no longer able to invest in development, and repaying loans is becoming increasingly difficult. Economists predict a wave of bankruptcies as early as the first half of this year. Yet despite the alarming economic situation, war remains the kremlin’s top priority. The government is deliberately sacrificing the civilian economy for the sake of war, dragging the country deeper into crisis.
