March 17, 2022. Socio-Economic Situation in the Russian Federation. Sanctions in Action



Instead of the ECtHR, Russians will now turn to the Russian Constitutional Court for protection of their rights.

The Head of Buryatia Alexei Tsidenov reported about nine thousand railway cars from Russia, detained in Ukraine. Debts for lease payments for equipment seized abroad can be written off, - said Tsidenov.

Reduction of KamAZ’s production may reach 40%, 15 thousand employees will go into downtime due to lack of components, - said the head of TatarstanPesoshin.

For the second time within a month, AvtoVAZ has increased prices for Lada cars. The average price increase was 8%. AvtoVAZ also postponed the corporate holiday, which was planned from July 25 to August 14, to April 4-24 due to the “crisis in the supply of electronic components and in order to prevent significant reductions in earnings”.

VolodymyrRashevsky, who has come under Western sanctions, has left the board of directors of the Siberian Coal Energy Company (SUEK). Also, the head of Sibur Holding, DmytroKonov, who is also under sanctions, is leaving the post, leaving the board and the board of directors.

Sheremetyevo Airport has decommissioned the third runway, halted investment projects and significantly reduced non-production costs.

Tour operators predict an increase in prices for summer vacations in Russia to 30%.


Europe and the World

Russia was expelled from the Council of Europe after 26 years of participation in the Organization. It is the first country in the history of the Council of Europe to be expelled from the organization.

The United States and its allies have launched an interagency group to search for and seize assets and prosecute Russia's elites, the US Treasury Department said.

At the request of the delegations of the United States, Great Britain and Canada, the IMF has reduced the honorary position of doyen (protocol issues), which was held by the representative of Russia Alexei Mozhin.

An An-124 transport plane belonging to the Russian cargo airline Volga-Dnipro has been arrested in Canada.

Switzerland has included more than 200 individuals and legal entities in the list of sanctions.

The American index provider S&P Dow Jones Indices, after consulting with market participants, decided to exclude the obligations of Russian and Belarusian issuers from the calculation of indices.

Refinitiv, a global provider of financial market data and infrastructure that is part of the London Stock Exchange, has stopped providing its products and services to all customers in Russia.

The EU will distribute steel quotas to other countries for those subject to Russian and Belarusian sanctions.

German energy concern E.ON has stopped purchasing new volumes of gas from Russian companies.

Due to sanctions and the refusal of importers to purchase, oil production in Russia is projected to fall by 3 million barrels per day from April on. At the same time, the forecast for global oil demand growth in 2022 has been reduced by 1.1 million barrels per day -  to 2.1 barrels per day.

Austrian oil company OMV no longer sees Russia as a key region for its future investments, the company said.

Japan will expand the circle of Russian oligarchs and freeze their assets. It also deprives Russia of the most favored nation status, which will raise tariffs on all Russian goods.

Spain is suspending the issuance of residence permits to Russians, which previously could be obtained by investing in the country's economy.

Slack Messenger has begun disabling “some customers” from Russia. This applies to organizations subject to direct sanctions. Slack Technologies manages an enterprise application for exchanging messages between employees.

According to the analytical company Sensor Tower, 6,982 applications have been removed from the Russian App Store since the beginning of the war in Ukraine.

The American IT company Xsolla plans to relocate part of the staff of the Russian branch located in Perm abroad, most likely to Malaysia.

Samsung's head office in Korea claims that they have stopped supplying their products to Russia.

Qualcomm, the leader in wireless communications development and research, has stopped selling its products to Russian companies.

Games Workshop stops selling Warhammer products in Russia.

The Farnborough International Aerospace Salon, which will take place in the UK from July 18 to 22, has refused Russia's participation.

Pharmaceutical companies Pfizer, Lilly, AbbVie, Sanofi and MSD refuse to conduct clinical trials of their drugs in Russia. Earlier, these companies announced the cessation of activities in Russia.

The pharmaceutical company Novartis AG is suspending investments and commercial activities in Russia. Biopharmaceutical company Merck & Co (MSD, USA) is also suspending further investment in Russia, but will continue to supply vital drugs and vaccines.

Illy coffee stops supplying to Russia.

The International Chess Federation FIDE has moved the 2022 World Chess Olympiad from Moscow to India and temporarily suspended the national teams of Russia and Belarus from participating in the competition.

One of the world's largest insurance companies, Munich Re, will gradually close its business in Russia and Belarus.

Sotheby's and Christie's are canceling auctions for Russian works of art scheduled for June, The Art Newspaper reported.

Paramount has stopped working in Russia.