Putin has a logistical problem. Russia’s industrial base is shrinking at the very moment he needs it most. Rosstat data for September indicate an acceleration in the decline in industrial production in annual terms - the fall is estimated at 3.1% after a 0.1% decline in August. The start of partial mobilization at the end of September would not have had time to affect the output, with a higher probability, the decline was caused by the high base of 2021 and the systemic problems of the Russian industry. Demand affects the dynamics of production: the decline in production continues due to the sanctions deterioration in foreign trade conditions, while processing is not able to cover the population's needs for familiar products after the departure of Western companies. The output structure is changing in a different direction: the industry has been able to increase the production of a number of simple goods, but is experiencing difficulties in technological industries - for example.
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Russia's Collapsing Industrial Production…
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Putin has a logistical problem. Russia’s industrial base is shrinking at the very moment he needs it most. Rosstat data for September indicate an acceleration in the decline in industrial production in annual terms - the fall is estimated at 3.1% after a 0.1% decline in August. The start of partial mobilization at the end of September would not have had time to affect the output, with a higher probability, the decline was caused by the high base of 2021 and the systemic problems of the Russian industry. Demand affects the dynamics of production: the decline in production continues due to the sanctions deterioration in foreign trade conditions, while processing is not able to cover the population's needs for familiar products after the departure of Western companies. The output structure is changing in a different direction: the industry has been able to increase the production of a number of simple goods, but is experiencing difficulties in technological industries - for example.