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‘There’s no path out of economic oblivion for Russia’: New report reveals how corporate exodus has already wiped out decades of post–Cold War growth
Yahoo Finance/Fortune ^ | August 4, 2022 | Yvonne Lau

Posted on 08/06/2022 8:40:00 PM PDT by devere

Over the past six months, Russia has fortified its economic defenses after Western countries pummeled it with sanctions over its invasion of Ukraine.

Despite the crackdown, the Kremlin continues to rake in billions in oil and gas revenues, which helped the ruble rally to become the world’s best-performing currency this year.

But all is not well with the Russian economy.

The Western sanctions and widespread corporate exodus from Russia since Feb. 24 have ravaged the Russian economy—and its future prospects look even bleaker, according to a new report from Yale University researchers and economists led by Jeffrey Sonnenfeld, Yale School of Management professor and senior associate dean for leadership studies. It’s now become clear that the Kremlin’s “finances are in much, much more dire straits than conventionally understood” and that the large-scale “business retreats and sanctions are catastrophically crippling the Russian economy,” the researchers wrote.

As of Aug. 4, over 1,000 companies, including U.S. firms like Nike, IBM, and Bain consulting, have curtailed their operations in Russia. Though some businesses have stayed, the mass corporate exodus represents 40% of Russia’s GDP and reverses 30 years’ worth of foreign investment, says Yale report.

The international retreat is morphing into a larger crisis for the country: a collapse in foreign imports and investments.

Russia has descended into a technological crisis as a result of its isolation from the global economy. It’s having trouble securing critical technology and parts. “The domestic economy is largely reliant on imports across industries…with few exceptions,” says the report. Western export controls have largely halted the flow of imported technology from smartphones to data servers and networking equipment, straining its tech industry...

At the same time, Russia’s “domestic production has come to a complete standstill—with no capacity to replace lost businesses, products, and talent,” the Yale report said.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Foreign Affairs; News/Current Events; Russia
KEYWORDS: ajntsa; globohomo; lgbtq; lieberalworldorder; putinsbrownnosers; russiadefeated; yvonnelau
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I hope for everyone's sake that Russia gets rid of Putin and negotiates a peaceful settlement with Ukraine. But it is hard to be optimistic.
1 posted on 08/06/2022 8:40:00 PM PDT by devere
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To: devere
I hope for everyone's sake that Russia gets rid of Putin and negotiates a peaceful settlement with Ukraine. But it is hard to be optimistic.

Nah. They'll be like North Korea. But with a lot more resources.

2 posted on 08/06/2022 8:42:36 PM PDT by MinorityRepublican
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To: MinorityRepublican

You mean the USSR. But they have already been that once before.


3 posted on 08/06/2022 8:44:28 PM PDT by Thunder90 (All posts soley represent my own opinion.)
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To: devere

The Ruble rally is also manipulated.

You can’t take dividends out of Russia anymore.

Russian exporters are required to convert at least half their proceeds into Rubles.

Foreigners can’t sell any investments in Russia.

I understand there are very few ruble currency transactions compared to prewar.


4 posted on 08/06/2022 8:45:03 PM PDT by DannyTN
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To: devere

This story is pure garbage. Russia now has the strongest currency in the world and a great realignment is coming in Asia and Eurasia economically, the Dollar will lose it’s reserve status and that means all those dollars come back to the U.S. for more inflation.

The New Alliance of China, India, and Russia will leave us in their wake and we have Done this to ourselves.

You want to know what is really going on then read this guy, he is on top of it all:

https://thecradle.co/Profile/32


5 posted on 08/06/2022 8:45:50 PM PDT by Captain Peter Blood
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To: Thunder90
You mean the USSR. But they have already been that once before.

Yeah but it was ruled by the communist party back then. Now it's just Putin. In North Korea, by Kim's family.

6 posted on 08/06/2022 8:48:37 PM PDT by MinorityRepublican
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To: devere

I think Putin’s intent is to make Russia self-sufficient and protect itself from the globalists.

In principle, the idea is sound.
However, whether or not it can be made to work remains to be seen.


7 posted on 08/06/2022 8:48:44 PM PDT by Jonty30 (Some men want to watch the world burn. It is they that want you to buy an electric car.)
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To: devere

After years of breathless hype about Trump hooker pee-tapes, the Steele Dossier, Alex Vindman and Robert Mueller phony investigations - are there still fools out there who actually believe what US corporate media is telling you about Russia and Ukraine?


8 posted on 08/06/2022 8:55:53 PM PDT by PGR88
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To: devere

I hope china gets ridof xi and ccp

I hope ukraine gets rid of zelensky

I hope iran gets rid of ayatollahs and irgc

I hope US gets rid of socialists biden and suck machine and nanzi

I hope the norks get rid of the kims and commies

I hope south africa gets rid of socialists anc

As long as we are hoping for things


9 posted on 08/06/2022 8:56:49 PM PDT by Secret Agent Man (Gone Galt; not averse to Going Bronson.)
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To: devere

Cool! Now do China!


10 posted on 08/06/2022 9:13:23 PM PDT by TBP (Decent people cannot fathom the amoral cruelty of the Biden regime.)
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To: PGR88

“After years of breathless hype about Trump hooker pee-tapes, the Steele Dossier, Alex Vindman and Robert Mueller phony investigations - are there still fools out there who actually believe what US corporate media is telling you about Russia and Ukraine?”

Have you not been reading the comments here? There are plenty of “freepers” buying that garbage. They must be giving up and listening to their liberal relatives.


11 posted on 08/06/2022 9:24:07 PM PDT by chuckb87
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To: devere

Globalist garbage from Yahoo. You Sorosbots keep scraping the bottom of the barrel.


12 posted on 08/06/2022 9:25:27 PM PDT by fieldmarshaldj (America Owes Anita Bryant An Enormous Apology)
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To: chuckb87

Trolls that should be riding the white lightning for spamming this website with globalist lies and propaganda.


13 posted on 08/06/2022 9:26:30 PM PDT by fieldmarshaldj (America Owes Anita Bryant An Enormous Apology)
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To: Captain Peter Blood

that means all those dollars come back to the U.S. for more inflation.

- - - - - - -

If dollars from other countries go to the U.S., wouldn’t there be hyperinflation?


14 posted on 08/06/2022 9:36:10 PM PDT by TTFX
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To: Jonty30
I think Putin’s intent is to make Russia self-sufficient and protect itself from the globalists.

Russia could have done that at any time, long before invading Russia. Just ban all imports - although that necessarily means banning exports too. Of course, there are some very good reasons why that would have been stupid, as Russia is going to find out.

15 posted on 08/06/2022 9:42:54 PM PDT by Bruce Campbells Chin
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To: devere

basically, russia is a gas station with nukes ...


16 posted on 08/06/2022 9:46:40 PM PDT by catnipman (In a post-covid world, ALL "science" is now political science: stolen elections have consequences)
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To: devere

“Though some businesses have stayed, the mass corporate exodus represents 40% of Russia’s GDP and reverses 30 years’ worth of foreign investment, says Yale report.”

LOL. Who counted? Did they count the capitalization of the outcoming businesses as a whole?:)

There is currently a fight between local and Chinese businesses for their assets. There is a lot of money to be made in substitution.


17 posted on 08/06/2022 9:48:32 PM PDT by NorseViking
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To: Secret Agent Man
"As long as we are hoping for things"


18 posted on 08/06/2022 9:50:56 PM PDT by clearcarbon (Fraudulent elections have consequences.)
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To: Bruce Campbells Chin

Maybe.
We will see.

I don’t support the Russian regime, but I do see Russians as largely innocent victims in this.

Assuming that Putin is being nationalistic and no other intent, he may have allowed globalism a foothold in order to learn from the West for economic development purposes.


19 posted on 08/06/2022 9:55:35 PM PDT by Jonty30 (Some men want to watch the world burn. It is they that want you to buy an electric car.)
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To: devere
Gay Clown Putin - the joke's on Russia, in the end.


20 posted on 08/06/2022 9:56:17 PM PDT by BeauBo
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