‘The return of banditry’: Russian car industry buckles under sanctions

The Guardian ^ | 11-JUN-2022 | Andrew Roth and Pjotr Sauer

[NorseViking]

Nominal incomes were higher ten years ago, I don’t dispute it. What is your point? The problem was obvious: too much reliance on unreliable Western partners. Luckily, the economic paradigm is changing and with it the economy improves. Let’s see it in 2030s. It is obvious that the Western-led globalist system with inflated service sector is crashing through the inflation of commodities and third world labor. Don’t be surprised to wake up poorer than the Russians in ten years. And you only have the policies of your government to blame.

[fireman15]

RuZZia's GDP per capita is lower today than 10 years ago. A full decade with no growth.

I do not have the first hand experiences that NorseViking does, GDP per person may or may not reflect the wealth of the average Russian. Your figures are cherry picked, out of date and appear to be inaccurate. Russia's highest GDP per capita in US dollars was reached in 2019 at $12,122. Here is a chart from Trading Economics that has figures that are likely closer to reality:

Russia had a financial crisis in 2014-2016 which was triggered in part by sanctions and skullduggery by Western intelligence agencies that did cause problems... but mostly because of declining oil and gas prices. Since that time they have worked to make their economy less dependent on foreign influence. Before the "invasion" and the "sanctions" their projected GDP per capita was expected to be $11,900 USD. Thanks to Biden's policies causing sky rocketing energy prices and the sanctions causing soaring food and fertilizer prices... 2022 is now likely to far surpass the GDP per person record set by Russia in 2019 .

https://tradingeconomics.com/russia/gdp-per-capita

Here is a chart of crude oil prices from 2008 to 2018 as the graph above... notice any similarities in the 2014 to 2016 time period? For Russia the price of energy is the best predictor of what their GDP is going to be. To punish them Biden and Company have driven the price of oil to all time highs... brilliant!

As far as what those figures actually mean... the cost of living in Russia is far less than in the USA. The average price for a 1 bedroom apartment in Russia is $245. Where my wife and I live it costs almost ten times that much for a 1 bedroom apartment. The national average in the USA in 2022 for a 1 bedroom apartment is now $1751.

Would my wife and I want to live in Russia? Obviously not, but it is not that hard to understand why some of our Russian friends are hoping to move back with the savings that they have accumulated while living here. In Russia they are rich.

[NorseViking]

Mostly true. Now imagine if you are a low income Russian making $800 a month vs the American making $2500.
As a Russian you are normally able to save or invest at least half of your income based on the price of daily expenses. As an American not so much.

[McGruff]

Leave your car parked in any US inner city overnight if you want to see some banditry.

[fireman15]

Here is a chart comparing Russia's monthly revenue from oil and gas sales compared to last year.

In April their revenue had more than doubled compared to last year. In May their production increased an additional 200,000 to 300,000 barrels per day compared to April. A similar rise in production has been taking place in June as compared to May. Speedy, I have a little secret for you... they are currently having no problems selling their energy products despite the "sanctions". They do not have the facilities to store that much excess production. The projections that Russia would have to cut production because of the "sanctions" have not come to pass and likely will not. 80% of the world's population live in countries where they do not recognize the "sanctions" our European and Asian trading partners are still buying Russian oil as well although some is coming through intermediaries such as India.

[fireman15]

I have no firsthand knowledge of Russia only what I am told by acquaintances, read and see and hear from the media. Thank you so much for sharing your knowledge. Very few here and elsewhere have any real perspective.

[SpeedyInTexas]

Dirty RuZZian

[CrimsonTidegirl]

LOL!

[CrimsonTidegirl]

Thanks for the amusement.

Seriously, why do you “Ukraine First” Cultists spell “Russian” that way? Honestly, it looks very childish.

[Ultra Sonic 007]

Probably because they think it’s clever, replacing the “s” with the “Z” used as identifiers on certain vehicles used by Russia in the invasion.

[CrimsonTidegirl]

That’s correct; I forgot about the “Z”.

Either way, it’s childish.