{"id":1252561,"date":"2025-06-26T20:42:16","date_gmt":"2025-06-26T17:42:16","guid":{"rendered":"https:\/\/prm.ua\/russias-economy-is-falling-into-a-deep-abyss-is-it-really-so\/"},"modified":"2025-06-27T04:00:20","modified_gmt":"2025-06-27T01:00:20","slug":"russias-economy-is-falling-into-a-deep-abyss-is-it-really-so","status":"publish","type":"post","link":"https:\/\/prm.ua\/en\/russias-economy-is-falling-into-a-deep-abyss-is-it-really-so\/","title":{"rendered":"Is Russia\u2019s Economy Really Collapsing \u2014 or Just Rewiring for War?"},"content":{"rendered":"<p><em>Source: Author&#8217;s <a href=\"https:\/\/www.facebook.com\/DmytroVovnianko\/posts\/pfbid023SaMh82fqQpybrKRpHkEnorsoCK4FBK1qaH3gMt2iR8JWB2H3t9USZTtjuLR3tDml\" target=\"_blank\" rel=\"noopener nofollow\">Facebook<\/a> page<\/em><br \/>\n<strong>Some news items are just too striking to ignore \u2014 and today\u2019s headlines delivered more than a few. So let\u2019s dive in.<\/strong><\/p>\n<p data-start=\"163\" data-end=\"506\"><strong data-start=\"163\" data-end=\"249\">Oil prices have dropped again \u2014 and honestly, it couldn\u2019t have gone any other way.<\/strong><br data-start=\"249\" data-end=\"252\" \/>The main reason for the decline is the influx of cheap oil from <strong data-start=\"316\" data-end=\"326\">Guyana<\/strong>, <strong data-start=\"328\" data-end=\"338\">Brazil<\/strong>, and <strong data-start=\"344\" data-end=\"358\">Kazakhstan<\/strong>. The market is now flooded with supply, so the recent price increase caused by the war was always going to be temporary. And more drops are coming.<\/p>\n<p data-start=\"508\" data-end=\"798\">Second<strong data-start=\"508\" data-end=\"519\">.<\/strong> The expansion of the Baikal-Amur Mainline (BAM) and the Trans-Siberian Railway has been postponed for two years.<br data-start=\"644\" data-end=\"647\" \/>Why? There\u2019s no money.<br data-start=\"673\" data-end=\"676\" \/>This was an infrastructure megaproject intended to increase the export of raw materials to China \u2014 and they can\u2019t fund it.<\/p>\n<p data-start=\"800\" data-end=\"1114\">If that doesn\u2019t sound alarming enough, let me break it down:<br data-start=\"860\" data-end=\"863\" \/>Imagine <strong data-start=\"871\" data-end=\"882\">Gazprom<\/strong> \u2014 the gas giant \u2014 now unable to afford to build a pipeline to sell <em data-start=\"950\" data-end=\"956\">more<\/em> gas. That\u2019s exactly the role the entire Russian economy has stepped into.<br data-start=\"1030\" data-end=\"1033\" \/>They don\u2019t have the money to build the highway.<br data-start=\"1080\" data-end=\"1083\" \/>And this isn\u2019t the only case.<\/p>\n<p data-start=\"1116\" data-end=\"1282\">Moscow is also freezing construction of the North-South Transport Corridor<strong data-start=\"1116\" data-end=\"1195\">.<\/strong><br data-start=\"1195\" data-end=\"1198\" \/>The funding is expected to run dry by July \u2014 and then, that\u2019s it. No more money.<\/p>\n<p data-start=\"1284\" data-end=\"1600\">But the consequences don\u2019t stop there.<br data-start=\"1322\" data-end=\"1325\" \/>Local authorities in Russia\u2019s Far East have already sounded the alarm. Why? Because Russian Railways contractors are the primary taxpayers in the region. If construction halts, the tax base disappears \u2014 and with it, the region\u2019s entire economy could collapse.<\/p>\n<p data-start=\"1602\" data-end=\"1720\"><strong data-start=\"1602\" data-end=\"1626\">Moscow has no money.<\/strong><br data-start=\"1626\" data-end=\"1629\" \/>And now, this financial vacuum is hitting Russia\u2019s military-industrial complex as well.<\/p>\n<p data-start=\"1722\" data-end=\"1767\">Because \u2014 here comes news number three&#8230;<\/p>\n<p data-start=\"1722\" data-end=\"1767\">\t\t<aside class=\"shortcode-also\" data-title=\"Read also\" >\n\t\t<a href=\"https:\/\/prm.ua\/en\/billion-dollar-debts-and-defaults-a-banking-crisis-is-brewing-in-russia\/\">Billion-dollar debts and defaults: a banking crisis is brewing in Russia<\/a>\n\t<\/aside>\n<\/p>\n<p data-start=\"188\" data-end=\"720\">The company Option-Stavropol has ceased operations due to debt: accounts have been frozen, and staff are being laid off.<br data-start=\"326\" data-end=\"329\" \/>This is no small enterprise \u2014 it manufactures power semiconductors for Russian military aviation (Su, MiG, Tu) and the defense industry. Reports say the company has been operating at a loss for nearly a year.<br data-start=\"553\" data-end=\"556\" \/>And this is far from an isolated case \u2014 for months, insiders have reported that Russian defense contractors are suffering from non-payment across the board.<\/p>\n<p data-start=\"727\" data-end=\"1195\">And finally \u2014 news #4.<br data-start=\"753\" data-end=\"756\" \/>The Russian government has already had to spend 26 billion rubles to bail out Alrosa, the country\u2019s flagship diamond mining and sales corporation, and save it from bankruptcy.<br data-start=\"947\" data-end=\"950\" \/>Why? Because the Russian diamond industry is under sanctions.<br data-start=\"1015\" data-end=\"1018\" \/>Exports have plunged by nearly 40% compared to pre-war levels, and to prevent total collapse, the Russian government is now buying its diamonds \u2014 using public funds.<\/p>\n<p data-start=\"1197\" data-end=\"1253\">That\u2019s right. Moscow is buying diamonds from itself.<\/p>\n<p data-start=\"1255\" data-end=\"1436\">Even China \u2014 supposedly Russia\u2019s \u201cstrategic partner\u201d \u2014 refuses to buy Russian diamonds, even at discounted prices, for fear of falling under Western secondary sanctions.<\/p>\n<p data-start=\"1438\" data-end=\"1781\">And yes \u2014 I\u2019m writing this specifically for the na\u00efve optimists, the geopolitically illiterate, and the clinically delusional commenters already drafting their \u201cChina will help Russia\u201d responses.<br data-start=\"1645\" data-end=\"1648\" \/>If you don\u2019t understand the subject \u2014 don\u2019t write nonsense.<br data-start=\"1707\" data-end=\"1710\" \/>And if you do \u2014 don\u2019t take offense at the accuracy of this description.<\/p>\n<p data-start=\"1788\" data-end=\"1924\">But here\u2019s the real question:<br data-start=\"1817\" data-end=\"1820\" \/>Why aren\u2019t Russian diamonds being re-exported through third countries, the way Russian oil often is?<\/p>\n<p data-start=\"1926\" data-end=\"1987\">It\u2019s not about pricing \u2014 they\u2019re not being bought at all<strong data-start=\"1951\" data-end=\"1987\">.<\/strong><\/p>\n<p data-start=\"1989\" data-end=\"2233\">There may be only one plausible explanation:<br data-start=\"2033\" data-end=\"2036\" \/>The global diamond market\u2019s second major monopolist \u2014 <strong data-start=\"2090\" data-end=\"2102\">De Beers<\/strong> \u2014 has likely made it crystal clear to all major buyers that anyone purchasing Russian diamonds will face serious consequences.<\/p>\n<p data-start=\"2235\" data-end=\"2426\">There are many forms of pressure in this world \u2014 some subtle, some blunt.<br data-start=\"2308\" data-end=\"2311\" \/>And when <strong data-start=\"2320\" data-end=\"2393\">De Beers <\/strong>refuses to touch Russian diamonds even at rock-bottom prices, it likely means only one thing:<\/p>\n<p data-start=\"2428\" data-end=\"2502\">They\u2019re planning to take over everything \u2014 for next to nothing<strong data-start=\"2448\" data-end=\"2502\"> \u2014 <\/strong>soon<strong data-start=\"2448\" data-end=\"2502\">.<\/strong><\/p>\n\t\t<aside class=\"shortcode-also\" data-title=\"Read also\" data-right>\n\t\t<a href=\"https:\/\/prm.ua\/en\/there-is-nothing-left-to-patch-the-holes-in-the-budget-russia-has-admitted-that-it-has-exhausted-the-last-resources-of-the-economy\/\">There is nothing left to patch the \u201choles\u201d in the budget: Russia has admitted that it has exhausted the last resources of the economy<\/a>\n\t<\/aside>\n\n<p data-start=\"153\" data-end=\"500\">I anticipate the question: <em data-start=\"180\" data-end=\"327\">\u201cBut you recently said that Moscow is increasing drone production and that this fall we could face an invasion of 700 drones every day!\u201d<\/em><br data-start=\"327\" data-end=\"330\" \/>Yes, I said that, and I stand by it. Moscow has indeed thrown all its remaining resources into drones to shift the balance on the front lines \u2014 that is true.<\/p>\n<p data-start=\"502\" data-end=\"748\">Just as it is true that Hitler, at one point, poured every possible resource into his so-called <em data-start=\"598\" data-end=\"613\">\u201cWunderwaffe\u201d<\/em>, including the V-2 rockets. The peak of their rocket attacks came at the end of 1944\u2026 and then something very bad happened to Germany.<\/p>\n<p data-start=\"750\" data-end=\"957\">It\u2019s also true that during World War I, Germany launched a desperate offensive at the Marne River in July 1918 \u2014 and by November of that same year, Germany surrendered to the Entente under humiliating terms.<\/p>\n<p data-start=\"959\" data-end=\"1123\">It is equally true that Russia\u2019s economy is in free fall \u2014 and that gives us a tremendous opportunity.<br data-start=\"1060\" data-end=\"1063\" \/>We must seize this chance while minimizing our losses.<\/p>\n<p data-start=\"1125\" data-end=\"1314\">Because the fact that this opportunity exists is not so much thanks to political leaders, but thanks to the Ukrainian soldiers who, despite everything, grit their teeth and hold the line.<\/p>\n<p data-start=\"1316\" data-end=\"1429\">But the fact that our skies remain vulnerable to 700 drones a day? That is precisely the fault of those in power.<\/p>\n<p data-start=\"1722\" data-end=\"1767\">Also, follow <strong>\u201cPryamyi\u201d<\/strong> on <a href=\"https:\/\/www.facebook.com\/pryamiy\/\" target=\"_blank\" rel=\"noopener nofollow\">Facebook<\/a>, <a href=\"https:\/\/twitter.com\/prm_ua\" target=\"_blank\" rel=\"noopener nofollow\">Twitter<\/a>, <a href=\"https:\/\/t.me\/+rtV4dxYu2_cyNjVi\" target=\"_blank\" rel=\"noopener nofollow\">Telegram<\/a>, and <a href=\"https:\/\/www.instagram.com\/pryamiy\/\" target=\"_blank\" rel=\"noopener nofollow\">Instagram.<\/a><\/p>\n<p><span style=\"font-size: 10pt;\"><em>\u2022 Materials published in the \u201cOPINIONS\u201d section reflect the opinion of the author of the publication, who bears full responsibility for the accuracy of the information.<\/em><\/span><br \/>\n<span style=\"font-size: 10pt;\"><em>\u2022 The editorial staff of prm.ua may not share the opinions expressed in the author&#8217;s material.<\/em><\/span><br \/>\n<span style=\"font-size: 10pt;\"><em>\u2022 The owner of the webpage in the \u201cOPINIONS\u201d section is the author of the publication.<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: Author&#8217;s Facebook page Some news items are just too striking to ignore \u2014 and today\u2019s headlines delivered more than a few. So let\u2019s dive in. Oil prices have dropped again \u2014 and honestly, it couldn\u2019t have gone any other way.The main reason for the decline is the influx of cheap oil from Guyana, Brazil, [&hellip;]<\/p>\n","protected":false},"author":57,"featured_media":1252556,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[76871,76892,76893],"class_list":["post-1252561","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-2","category-economy","category-thoughts"],"_links":{"self":[{"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/posts\/1252561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/comments?post=1252561"}],"version-history":[{"count":3,"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/posts\/1252561\/revisions"}],"predecessor-version":[{"id":1252626,"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/posts\/1252561\/revisions\/1252626"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/media\/1252556"}],"wp:attachment":[{"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/media?parent=1252561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prm.ua\/en\/wp-json\/wp\/v2\/categories?post=1252561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}