consequence of western sanctions
Mayor: 200,000 Muscovites face job loss
April 18, 2022, 4:00 p.m
The exodus of Western companies is likely to significantly increase the number of unemployed in Russia. In order to cushion the consequences, the capital Moscow is setting up a special aid program. President Putin, on the other hand, sees the domestic economy hardly affected by the sanctions.
According to Mayor Sergei Sobyanin, tens of thousands of Muscovites are at risk of unemployment because of Western sanctions against Russia. “According to our estimates, around 200,000 people are at risk of losing their jobs,” Sobyanin said on his website. In order to cushion the consequences of unemployment, the authorities approved an aid program worth the equivalent of 38 million euros last week.
The aid program is aimed primarily at employees of foreign companies “who have temporarily suspended their activities or decided to leave Russia,” Sobyanin explained. The program is intended to finance, among other things, retraining.
Since the start of Russian military action in Ukraine on February 24, hundreds of Western companies have announced the suspension of their operations in Russia, with some announcing a complete withdrawal from the country. Experts expect the sanctions to have serious consequences for the Russian economy and predict a severe recession.
According to Russian President Vladimir Putin, however, the West is only harming itself with its sanctions. These have led to a deterioration in the economy, he said at a video conference with high-ranking government officials. Regarding the Russian economy, he explained that inflation has stabilized and retail demand has normalized. Russia should use its budgetary leeway to provide more support for the domestic economy. The provision of liquidity can be supported in the face of shrinking lending, Putin said.