After War Effect on Russia / Why is Russia in the grip of recession after the war? READ FULL REPORT BY IPI
Hello friends
hope you all are healthy and safe.
Perhaps one of the most recent news you are reading or hearing about is the war between Russia and Ukraine.
By now you must have read a lot of news about how Russia has carried out many attacks on Ukraine and almost completely destroyed Ukraine.
But if you think that only Ukraine has suffered a lot from this war, then you are probably wrong.
We have brought this article especially today so that it can reach you that whenever a country enters into war, how expensive it can be for that country to go to war.
And perhaps you will also be surprised to know that the devastation witnessed in Ukraine is nothing compared to the devastation in Russia.
The biggest thing for any country or for the people of any country is the economy of that country, through which the country runs, through which the people of that country carry their lives easily.
So let us tell you in today’s article how much this war is affecting the economy of Russia and Russia and what is its effect on the standard of living of the people there.
At this time the condition of the common people of Russia is very bad. Russia’s currency, the ruble, has fallen so rapidly in the past few days that long queues are seen outside ATMs in Russia. Russian banks do not even have cash left to give to the public.
The people of Russia are now buying more and more phones and electronic items because they feel that the value of their currency may fall but the value of electronic items will not fall. That’s why Russia’s electronic items stores are full.
The money of the common people of Russia is losing its value so fast that there is no limit. Many people are not able to take their salary whose business was based in another country.
Inflation is rising so fast in Russia that many economic advisors are warning that if this trend continues, the situation in Russia may be similar to that of Venezuela.
After all, what is it that is causing this internal condition in Russia?
In our country too, many people are always in favor of war, but by reading this article today you will definitely understand that what is the cost of going to war for any country and its general public. How much effect.
The Russian currency ruble has fallen by more than 30%. At the time when we are writing this article, the ruble price is running as 1Ruble = .0075$ and 1 Russian Ruble = .57 Indian Rupee ₹. Which is half as much as before.
Recently, in a research by the Center for Economic Recovery, it has been found that in the first 4 days of the war, Russia had to bear the expenditure of $ 7 billion per day i.e. more than 50000 crore rupees. And now as this war is progressing, according to this research, now the price of this war can cross $ 20 billion per day to Russia, which is probably a huge amount.
Here you can see how much money Russia has to spend every single day to keep this war going and this is just the expenditure that the Russian government is spending and using the expenses of a Russian taxpayer is for this war.
Let us now tell you how many restrictions have been imposed by other countries and many big companies on Russia –
33 countries have recently closed their airspace to Russian airlines, that is, no Russian aircraft can fly through those countries, which includes America, Canada and many European countries. More than 1 lakh 50 thousand Russian citizens had gone to other countries to roam outside their country, which are now unable to come back to their country.
Along with this, Airbus and Boeing, the largest companies that make aircraft, have now refused to provide aircraft parts to Russia and they are going to stop all their operations in Russia, so it seems that the coming In time it will be very difficult for anyone in the world to fly in Russia to fly out of Russia.
Big clothing companies or big shoes companies like H&M, PUMA, they have now closed their operations in Russia.
Also major car companies like BMW, JAGUAR, TOYOTA, MARCEDES and HONDA have imposed restrictions on exporting their cars to Russia. Along with this, they have also stopped all their operations and production of vehicles in Russia.
IKEA, which is a very large furniture company in Sweden, has also closed all its stores in Russia.
Airbnb, which is a very useful platform for travelers, has also closed all its operations in Russia.
Video streaming platform Netflix has now banned the opening of new accounts in Russia.
Big famous technology companies such as Apple and Microsoft have stopped selling their products in Russia. South Korean company Samsung has also said that it will no longer sell its products in Russia.
Above you must have seen that the companies which have imposed restrictions on Russia are all those big companies whose products we and you probably use in our everyday life.
And all these big companies contribute a lot in the economy of any country and in the employment of that country.
If we talk about oil now, then big oil companies like BP, ExxonMobile etc. have also made a lot of speculations on Russia. Bp has said that it will sell about 20% of its stake to a Russian oil company.
That is, the investment of outside companies in the companies of Russia is now starting to have more impact on that too.
Very big companies which were trying to invest their money in Russia or were making such plans have now changed their plans.
Now if five other things are to be done, then FIFA and UEFA, the 2 biggest subsidiaries of football, have suspended the Russian football team from all tournaments.
Recently, Formula One Racing, whose Grand Prix was to be held in Russia, has also canceled it.
VISA and MasterCard The largest payment processing networks that use million of credit cards and account for 70% of Russian payments recently blocked Russian banks
International payment transfer companies such as Remitly and Wise have also suspended their operations in Russia.
Apple Pay, GPay, Samsung Pay have also imposed restrictions on most Russian banks.
Now it has become a very difficult task for the people of Russia to make payment, so the people there are standing in long queues near ATMs to withdraw cash.
As we know that when many people try to withdraw cash at the same time, no bank has that much cash at one time and this situation is called BANK RUN.
If there is such an internal situation of any country, then you can understand how badly the stock market will fall there. Realizing this, the Russian government has closed its stock market for about 1 week. Since the day Russia attacked Ukraine on the first day, the stock market of Russia is still closed because of the fear that if they open it, their stock market will fall very badly.
Just now you have seen that many big multinational companies have also imposed very strict sanctions on Russia, but it is still a company by many governments or rather, the governments of most countries have imposed very strict sanctions on Russia. When any country imposes any kind of penalty or any penalty on another country because that country has violated any international law, then the sanctions imposed in that situation are called Sanctions.
Many countries have imposed economic sanctions against Russia. Attempts have been made to target Russia’s economy. So that the life of the people there can be disturbed, due to which there is pressure on the government there.
The biggest sanction that has been imposed on Russia recently is that Russia has recently been blocked from the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system. It is such a payment system that is used internationally, it is valid in more than 200 countries using more than 11 thousand financial institutions to send money from one country to another. The central bank of almost every major country uses this system only.
Let us tell you that the SWIFT system does not move money in itself, rather it only becomes a medium of communication between two international banks. It tells the instructions to one bank that I have to transfer that much money to another bank and to this place. So it acts like a communication channel between the banks.
If you have ever done international money transfer, then you would know that every bank has a SWIFT code.
SWIFT CODE is something like this
AAAA BB CC 000
in which AAAA = BANK NAME
BB= COUNTRY CODE
CC= LOCATION CODE
000= BRANCH CODE
If you want to send money from India to any of your American friends, then you have to use the SWIFT code of that American bank there which it will communicate between those two banks to whom the money is being sent.
Blocking from this system means that now Russian banks can neither send money nor take money from anywhere. Although Russia is not the first country that has been blocked from this system, before this Iran was also blocked from this system and as a result Iran lost one third of its foreign trade.
However, Russia will soon use a new system of its own and will solve this problem.
If we talk about other sanctions, then all the assets of the central bank of Russia have been frozen by other countries. As you would know that the Reserve Bank of every country has some foreign exchange reserves, which are also called forex reserves, that is, banks also have some money in the form of foreign currency, which each country gives to any other foreign countries. Keeps it for payment.
Similarly, the Central Bank of Russia keeps reserves of US dollars with itself and now America and other countries have frozen these reserves, which is being said to be worth 630 billion dollars.
Along with this, many types of restrictions have also been imposed on the influential people of Russia or Russian Oligarchs as you say.
It has been believed that these influential people of Russia have full hand on Putin.
The properties of these same people of Russia which are in foreign countries, such as their property in foreign countries or their own planes, their big ships, have recently been confiscated by America and other countries.
Recently a very large yacht or a large yacht of a Russian high named IGOR SECHIN has been confiscated by the French government.
Due to this fear, recently, the big people of Russia are taking their yachts to countries where the Western government cannot reach, such as the Middle East and the Maldives.
Along with this, flight ban is being imposed on these Russian influential people.
The intention behind doing all this is clear to put pressure on Putin to stop the war.
Now let us also tell you that one thing on which probably most of the countries of Europe depend on Russia is oil and gas.
Countries in Europe depend on Russia for more than 40% of their oil and gas needs.
Despite this, Germany has recently suspended the approval of the Nord Stream 2 pipeline.
All these countries are now trying their best to reduce their dependence on Russia. America has also said that the oil and gas reserves they have, now America will supply it to Europe.
So many restrictions are being imposed on Russia that inflation is increasing very fast in Russia and it is becoming very difficult for common people to live there.
The people there are not able to use a basic payment system, they are not able to get cash from banks and it is having a very bad effect on the general public of Russia.
So as we told you earlier that now people there are buying electronic gadgets. Because the value of the currency there is still falling down very fast, but if they buy electronic goods, then they feel that if they are sold in any other country, then at least its value will not be reduced.
It seems that in the coming days the standard of living of a common citizen of Russia will go down considerably. Many people will be pushed into the poverty line and the country will be in the grip of unemployment.
It should be thought by all those people who think that going to war is a very good thing for any country, you can see how scary it is for Russia and its common people to go to war now.
In our country too many people talk about war from time to time. But the cost of war is not paid by the government but by a common citizen of that country.
The damage that Russia has been suffering from this war recently is in its place and the amount of damage it will suffer in a long-term is probably difficult to even imagine.
As this war continues for days, more restrictions and stricter sanctions are being imposed on Russia.
Let’s see when this war ends and how much damage is done to Russia and Ukraine has to bear the consequences.
We are not saying here at all that Ukraine is not harmed by this, maybe the whole Ukraine has been destroyed by this, but if you go to the estimate, then it will not take as much money to build the whole Ukraine as probably Russia’s daily expenses |
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