The Russian industrial economy including the oil industry is entirely dependent on foreign software. Software which is no longer readily available to them. Russian Industry Faces Code Crisis as Critical Software Pulled https://www.bloomberg.com/news/arti...-crisis-as-critical-software-pulled#xj4y7vzkg Foreign IT controls much of Russia’s modern industrial assets Just 5% to 10% of oil and gas industry software is domestic
Water, water everywhere and not a drop to drink. Russia is swimming in rupees but can’t get the upgrade to Microsoft office.
I have always said the Russians will need to build a new market and this is an interesting little scheme here. Dollars from India to China in exchange for yuan for India, yuan for coal to Russia through Dubai. So, who ends up with the dollars, the Chinese of course. I guess if I’m the Russians I’d rather yuan than rupees but at the end of the day the Chinese get lots of dollars.
Car sales in Russia are down 80%. Life has become much more expensive in Russia. Food prices are up a lot. People don't buy anything but food to save money, just in case if things get worse. So all businesses are declining. In cafés and restaurants prices are not up much because the owners are afraid that nobody will come anymore if prices go too high. They prefer to lose some money than to lose all their clients/business. Rouble in bank is at 60, but there are no dollars or euros available if you want to buy. The man in the bank said:"You should wait till a client brings dollars or euros to sell, and then you can buy that amount." If you go to one of the shops where you can change money, the rate is at 80 instead of 60. There you can buy some dollars or euros. But only small amounts. A Russian decided to leave Russia, so he wanted to sell his flat. Problem is that he gets paid in Ruble and will lose a lot of money if he changes these Rubles for USD or EURO. So he cannot sell or leave Russia. There is also no demand for flats as everybody waits till the conflict is over. Which might take years. Result is very low prices if you wish to sell. Information from someone who lives in Russia. The minister of Finance from Russia, Anton Siluanov, decided today that the Ruble is too expensive and should go down. Too much damage for export.
Germany seizes three Gazprom tankers in new blow for Putin https://finance.yahoo.com/news/ftse-100-markets-live-news-063525745.html The German government has taken control of three liquefied natural gas ships from Russian energy giant Gazprom. US-listed Dynagas LNG Partners said Germany’s energy network regulator assumed control of three vessels “for an indefinite period of time” after Berlin took ownership of Gazprom Germania in April. Two Dynagas ships, the Amur River and the Ob River, were chartered to a Gazprom unit until 2028, while the vessel Clean Energy was chartered to the unit until 2026. All have now been taken over by Berlin. Germany seized control of Gazprom Germania, which controls the country’s largest gas storage facility, to secure its energy supplies amid the Ukraine conflict. It has since renamed the company Securing Energy for Europe. The takeover came after Gazprom said it no longer owned its subsidiary Gazprom Germania but refused to disclose the unit’s new ownership structure.
The whole energy sector is down in Russia. Gasprom decided not to pay a dividend due to uncertainty and is actually delivering less gas. https://www.ft.com/content/8cbfc961-cf57-4c71-96ca-bb144c6dd676