Many thousands of professionals from the IT sector have left Russia since the beginning of the war. Other qualified workers could follow. Another setback for the country’s economy.
From the Bundesbank’s point of view, Russia is threatened with considerable economic damage as a result of the Ukraine war. According to the Bundesbank’s monthly report, major losses are not only to be expected in the short term, but also in the longer term.
Existing structural problems are likely to worsen considerably: “Overall, Russia is heading towards losing a considerable part of its prosperity in the long term.”
Loss of efficiency and regression through isolation
The Bundesbank’s experts see problems in both industry and the service sector. Russia continues to be heavily dependent on foreign intermediate goods. “The new export bans in western countries and the delivery restrictions imposed by many companies are likely to hit Russian industry particularly hard.” Russian exporters would have to look around for new sales markets and logistics options. “All in all, the Russian industry is threatened with high efficiency losses and technological regression as a result of the extensive international isolation.”
The Bundesbank also sees major burdens on Russian service providers. Russia has already lost many highly qualified workers to other countries in recent years. “Because of the Ukraine war, it is becoming apparent that this trend will intensify again.” Tens of thousands of IT professionals have reportedly left Russia since the war began on February 24.
Heavy dependence on oil and gas exports
Because of these challenges, the Bundesbank expects Russia to be even more dependent on oil and gas exports in the coming years. However, due to the reluctance of many buyers, the country had to accept high price reductions. “In addition, Russia could soon be forced to cut its oil production significantly because of the subdued demand.” In the case of gas, the Bundesbank sees the problem of a lack of infrastructure such as pipelines in the direction of alternative customer countries such as China.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
