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by throwaway_434
1559 days ago
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> Russia will try to find a way around these sanctions generally but it will be less efficient. It is not that easy to substitute everything. Russians may not care about latest brand items but domestic substitutions will not be always of good quality or functionality. It wasn't during Soviet Union and depending how long these sanctions last, it will gradually impact Russia. You are forgetting China here. 70% of mobile phone market in India is dominated by Chinese phones which are honestly far more feature packed than the latest iPhone. Of course one does not have any idea about privacy/security aspects of it. Will definitely not be as secure as an iPhone. But for a regular user, does this actually matter? Especially in developing countries? More so in Russia? When Soviet Union collapsed, China's GDP was slightly higher than India's GDP. It wasn't yet the manufacturing base and supply chain of the World. The West propped China up for 3 decades. Now Russia/Russians won't miss out much to be honest with you. There are alternatives for everything Western and then some. > countries will make sanctions even stronger In what way? The sanctions are already the strongest. There is nothing more "stronger" that can be done now. What can be "stronger" than cutting off financial telecommunications (through SWIFT)? Cutting off oil? That can be easily re-routed to India and China. India and China will love discounted Russian oil. I think the West is overestimating the impact of Sanctions. |
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The risk for financial collapse is definitely >0, especially since 2/3 of Russia reserve is frozen abroad and unavailable to keep the banks afloat in case of a crisis.
Oil and gas exports have slowed down a lot too, so few foreign currencies are coming in.
China will need to play it finely to stay out of trouble with the west (which is a way bigger market for them). If they do business, I see them keeping every chain of production in their country and selling only end products, which mean a massive brain drain and the loss of cutting-edge industries for Russia.
I don't have a lot of experience on this topic but to me, it looks like a hard blow on short, medium, and long term with a high risk of an economic collapse.