ltst newsletter: I focus on the #Russian labor market where there is a growing staff shortage. 🇷🇺 leaders talk proudly of record low unemployment. However, the headline figures mask despair of firms forced to increase wages as productivity falls
👇👇👇

en.thebell.io/russia-has-too…
2 waves of wartime emigration and mobilization cost the workforce about 600,000 men — 2% of all men aged 20-49. Same time, 390,000 men moved to posts in military, security and public administration, noticed @x1skv They have primarily moved from construction, processing and retail
There are several reasons for the shortages:
- Defense industry businesses are taking on workers from the civilian sector. This is a problem because the transition typically restricts the potential of the overall economy
- Two waves of emigration led to the departure of many qualified specialists, while foreign companies left Russia and local operations mothballed plans for expansion due to increased uncertainty
Almost 40 mln are working in the small business sector, or a self-employed or in casual employment. Usually, when workers are laid off or dismissed, they drift into this segment. There is far less movement in the opposite direction
Labor shortfall is a bottleneck for #Putin to switch Russia’s economy to a “war footing” to boost output or promote import substitution.
also is this issue: Russian's attitudes about the war with Ukraine are contradictory. But Rus would not easily accept the possibility of defeat, according to researchers at the Public Sociology Laboratory.
A “piecemeal” attitude toward the war, characterized by contradictions and built on narratives from both sides. Unhappiness about mobilization does not translate into unhappiness about the war. For Russians far removed from politics, mobilization and the war are distinct events.
Any talk of the need to end the war as quickly as possible means only victory. It is impossible to countenance defeat, even in a war started without good reason.

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More from @amenka

Mar 15
2022 left #Russia's elites atomized and awaiting repressions. Uncertainty because of sanctions scares them even more than uncertainty from #Putin. Absence of any mechanism to lift sanctions or any dialogue on this issue localizes elites within 🇷🇺
👇👇

carnegieendowment.org/politika/89271
Since the beginning of the war, 🇷🇺 elite and technocrats have not found the strength to either love the war or oppose it. Partly because of the moral career they made, partly because of the pressure from the FSB
carnegieendowment.org/politika/88143
In every state structure there is a department of FSB employees responsible for overseeing access to classified information. Their influence has grown significantly since 2014. More about this kind of FSB staff here (RUS): fsb.dossier.center/prikom/
Read 9 tweets
Feb 24
We spoke about the #war for this newsletter with almost ten high-ranked Russian officials and Forbes-list members.Key findings:
- most of them feel deceived
- they expect to see “disloyal” colleagues exposed and punished
👇
thebell.io/en/russian-bus…
Before the invasion, Putin repeatedly tried to reassure businesses, warning of “possible turbulence” but adding there would be no long term problems. “It will take a few months, six months at most,” described a source Putin’s words at a meeting with business in early February '22
Elites are tired of the war and Putin. Some are trying to free themselves and assets from sanctions — which means steering clear of Russia. Others are trying to avoid drawing attention to themselves, adopting a wait-and-see attitude in the hope that somehow things will improve
Read 12 tweets
Feb 10
Does a Record Budget Deficit Herald the Collapse of the Russian Economy? Unfortunately no. It's premature to make a trend on one-month data. But slowly & surely, the sanctions noose is tightening. here are my findings 👇👇👇 for @CEIP_Politika

carnegieendowment.org/politika/89009
The first month of 2023 saw the deficit reach a record RUB 1.8 trillion. Spending grew by 58% compared with January 2022, when there was a budget surplus of RUB 125 billion ($25 billion), while revenues fell by over a third.
Previously, the FinMin gradually distributed financing, peaking in the year's final quarter. LY more than a 1/3 of all spending took place in the final Q. TY, the FinMin has already placed 11% of annual planned spending. Excluding state contracts, budget spending grew just 6%
Read 6 tweets
Dec 22, 2022
Instead of the annual press conference, #Putin talked to the #Kremlin pool (BTW, since today, they have an official dress code). Here is a short thread about what we learned:
- #Russian economy is resilient because its deficits are smaller than those of the U.S. and China 1/
- the price cap will not affect budget revenues: "we're still selling at these prices." the reciprocal law he will sign on Mon-Tue bloomberg.com/news/articles/… 2/
- "we won't throw money away: macro stability is paramount," which means that the ultra-conservative policy of #Fortress Russia will continue.
more on that by @elinaribakova 3/
//twitter.com/elinaribakova/status/1605211618299809793?s=20&t=mLBfczl7SdypEhhakRbHLw
Read 9 tweets
Dec 10, 2022
Divergent trends in #Russia regions. @bank_of_russia version:
Central region:New buildings are unsold due to oversupply on the secondary market
NW region: The shipyards are busy but face labor shortages.Meat and dairy producers have simplified and cheapened the range of products
Volga region: due to the uncertainty, developers reduced the number of new projects. Horizon of tourist trips was significantly reduced
South region: High tourist flow supported consumption, but expectations are subdued. Azov-Black Sea ports cargo turnover at maximum
Ural region: Enterprise's estimates of output and demand improved. High rate of housing construction. Steelmakers plan to cut investment because of reduced exports
Siberia region: Coal production declined due EU embargo and railroad congestion in the eastern direction.O&G firms..
Read 4 tweets
Nov 25, 2022
#Putin suggested establishing new intnl settlement system based on ancient Hawala. The urge for Hawala 2.0 shows how desperately 🇷🇺 needs a systemic solution to the issue of intnl payments.Attempts to switch to rub/yuan/gold/crypto haven't been successful

frankrg.com/102702
Hawala (originated in 8th century in South Asia) is an informal funds transfer system that allows for the transfer of funds from one person to another without the actual movement of money. Nowadays it is also called underground banking and is widely used, for instance, in Iran
This is how it works: Vladimir needs to send $1000 to his partner Ali, who lives in another country. So he approaches a hawaladar Deniz and gives him the amount of money for Ali. Deniz contacts the hawaladar in Ali's country and asks him to give money to Ali.
Read 10 tweets

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