Russians face prospect of Soviet-style shortages as sanctions bite

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\u0027People seem to have grown used to the situation... My main problem right now is [the lack of] American alcohol,\u0027 said a cocktail bar owner in Moscow

Ural Airlines, which has over 50 Airbus planes, has projected that it can safely fly them for only a few months before it will need to start “cannibalizing” from other aircraft – permanently grounding some planes to strip them for parts. The low-cost airline Pobeda, part of the state-run Aeroflot group, has already reduced its fleet from 41 to 25 planes, using its grounded aircraft for “cannibalized” parts.

Supply disruptions, however, have hit not only assembly lines that rely on advanced technology but also those using imported materials. Sanctions “on the Russian Federation have practically broken all the logistics in our country,” Russian Transport Minister Vitaly Savelyev, conceded to journalists last weekend during a visit to Russia’s Astrakhan region.Article content

Sanctions have now shut the door on a wide range of those crucial inputs. Though many have not been explicitly banned, their availability has vanished as foreign companies avoid the taint of doing business in Russia.

Even the most optimistic analysts say it could take at least a couple of years for Russia to develop assembly lines for commercial planes made almost exclusively with local components. Other analysts project it could take far longer, if it happens at all. “Russia’s safety record was not stellar before, maybe at the level of Indonesia,” said aviation analyst Volodymyr Bilotkach. “But now, flying a Russian carrier is turning into a game of Russian roulette.”

Where good are still available, they are often more expensive — which is helping fuel inflation at higher rates than in the West — or of poorer quality.Article content

 

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Also we’re apparently the ones with Soviet style shortages.

The Ruble is at a 5 year high.

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