March 30, 2022 Socio-Economic Situation in the RF. Sanctions in Action

Experts from the Center for Strategic Development have calculated the unemployment rate that russia may face by the end of 2022. According to analysts, the unemployment rate in russia will be 7.1 to 7.8% compared to the current 4.4%. The economy could lose two million jobs.

Russia's ministry of digital development, communications and mass media has sent a recommendation to mobile operators to abandon unlimited tariffs and reduce the included Internet traffic in package offers. This is due to uncertainty with the supply of telecommunications equipment.

VTB Bank, which came under US and British sanctions in late February, is trying to survive in the new realities. In particular, VTB intends to transfer all its investment units, including the broker, management company and private pension fund, to “third partis”, the bank's press service said, commenting on the reasons for changing the names of a number of legal entities.

Boris titov, the russian presidential ombudsman, has come up with new measures to save russia's tourism business under international sanctions, namely to give tour operators the opportunity to defer a refund to customers.

The commissioner for children's rights in moscow region, ksenia mishonova, called for depriving the russian education system of Western standards and focusing on international rankings. “We need to abandon Western educational standards, we must move out of all Western systems, we must end up flirting with PISA (International Program for the Assessment of Student Achievement) and others. Especially in today's geopolitical situation, when we have been expelled from everywhere, “, said mishonova.

After the closure of many foreign companies in russia, citizens of other countries began to leave moscow en masse. According to realtors, 90% of expats have already left their apartments.

Since the beginning of the year, the average cost per square meter in the secondary housing market in major cities in russia has increased by more than 27%.

A new survey of russian citizens showed that recently 58% of them actively used the Instagram application. On March 21, the tver court of moscow ruled that Instagram and Facebook are extremist and banned their activities in russia. The court ruled that the activities of Meta (recognized in russia as extremist and banned in russia), which owns social networks, are directed against russia and its armed forces.

Outbreaks of coronavirus strain “Stealth-Omicron” in russia may occur in the next 2-4 weeks, - said doctor of biological sciences aleksandr chepurnov. Against this background, most russians are concerned about the availability of the necessary drugs in the country for the treatment of coronavirus.

Europe and the World

US senators have proposed directing the seized russian assets to help Ukraine. The new bill calls for the transfer of property and bank accounts of russians arrested by the US Department of Justice to the Refugee Relief Fund and for the reconstruction of Ukraine.

The British government calls on all public sector organizations to urgently review and, if possible, terminate contracts with russian and belarusian companies. The recommendations state that government agencies, including government agencies and hospitals, should immediately review any contracts with russian and belarusian companies and, if possible, change suppliers and legally terminate agreements.

The US Department of Defense plans to accelerate the production of Stinger anti-aircraft missiles and Javelin anti-tank missiles to replenish supplies and further military assistance to Ukraine.

The United States will impose sanctions on companies involved in the supply chain to russia, said US Deputy Secretary of the Treasury Wally Adeem.

According to preliminary information from the Slovak Ministry of Defense, the meeting of the Visegrad Four defense ministers will not take place in Budapest, as Poland, Slovakia and the Czech Republic have refused to participate due to Hungary's sluggish support for action against russia. Czech Defense Minister Jana Chernohova wrote on Twitter that she has always supported the Visegrad Four, and she is very sorry that cheap russian oil is now more important to Hungarian politicians than Ukrainian blood.

Belgium is sending away 21 russian diplomats “for espionage and security threats”, the Netherlands - 17, Ireland - four, the Czech Republic - one.

The head of the IMF believes that the russian economy is facing a deep recession this year.

The European Union, like the G7 countries, rejects russia's demand to pay for russian gas in rubles, the European Commission has said.

Axel Weber, chairman of the board of directors of the Swiss bank UBS Group AG, does not see a future for many international banks in russia even after the end of the armed conflict in Ukraine, he said in an interview with Bloomberg.

Poland’s government withdraws its agreement to conclude agreements with russia on support and mutual protection of investments.

A spokesman for the Polish government, Mueller, has announced a ban on the import of russian coal into the country.

All Irish lessors have terminated their contracts with russian airlines, but the return of the aircrafts is taking place with “varying degees of success”.

Canadian oil service company Calfrac Well Services has announced the suspension of all investments in russia. “Calfrac Well Services announces the suspension of all investments in the russian federation, as the company fulfills its contractual obligations in strict accordance with all applicable laws and sanctions”, - reads a statement on the company's website. At the same time, the company has canceled all planned supplies of equipment and spare parts to russia.

Earlier, a number of international companies, including oil service holdings Schlumberger, Halliburton and Baker Hughes, also announced the suspension of investment for their activities in russia.

The German Foreign Minister said that Germany had halved imports of russian coal in recent weeks.

The international rating agency Fitch has revoked the ratings of four Russian insurers – “VSK”, “Alliance”, “Alpha Insurance” and “Euroins”. As part of the fourth package of sanctions adopted by the European Union on March 15, European agencies are prohibited from rating russia and russian companies. In pursuance of this decision, Fitch revoked the ratings of 27 russian banks, their affiliates, and related SPVs.

After the start of the large-scale isolation of russia, wealthy russians have to invest in real estate in Turkey and the United Arab Emirates - that's where they are looking for a financial haven for their money, according to real estate companies.

Delegations from russia and belarus have not been invited to the ceremony marking the 77th anniversary of the liberation of the Buchenwald concentration camp.

Severstal has requested permission from the Office of Foreign Assets Control (OFAC) to make payments on foreign currency debt.

Areti Energy SPV, owned by russian billionaire igor makarov, has sold its stake to Canadian gas producer Spartan Delta Corp. This was one of the first cases of russians’ withdrawing from Canadian assets after the imposition of sanctions against russia.

Swiss building materials manufacturer Holcim has announced its intention to leave the russian market.

The American company Johnson & Johnson, the world's largest manufacturer of health products, has decided to stop supplying its products to russia.

The management of the Decathlon sports chain has announced the cessation of activities in russia.

The Finnish fast food chain Hesburger plans to close all its restaurants in russia and belarus in the summer, the company said.

The International Biathlon Union unanimously suspended the membership of the union of biathletes of russia and the belarusian biathlon federation.