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The war is raging on in Ukraine. But the destruction is caused in Russia too. The common Russians are in a bad condition.Russia has now fallen into a state of depression. The invasion of Ukraine has placed Russia on the verge of bankruptcy. Interest rates have doubled, the stock market has closed, and the ruble has fallen to its lowest level ever.
"Microsoft, Apple, Samsung, HP, Intel, all stopping new sales."
"At McDonald's, final orders, it's suspending business in Russia."
"All western businesses are shutting down. Everyone who can is leaving. We'll be left isolated."
~ CBS Evening News
The invasion of Ukraine has placed Russia on the verge of bankruptcy. Interest rates have doubled, the stock market has closed, and the ruble has fallen to its lowest level ever. Russian citizens are now unable to spend at IKEA, McDonald's, or Starbucks.
They are not allowed to convert any of the money they do have into foreign currency.
Now, there are long lines outside the ATMs in Russia. The Banks are out of cash to give to people. People have started hoarding phones and electronic items
they are buying as many as they can because they are the only things whose value wouldn't depreciate.
The hard-earned money of the people has started losing its value. Thousands of Russians that deal with foreign countries aren't getting their salaries. There's so much inflation people are worried that Russia might end up like Venezuela.
"Netflix has pulled out. TikTok, won't allow posts by Russian users. The Ruble: worth less than a penny!"
~MSNBC
Why is it happening in Russia? When a country goes to war, how does it affect the economy of the country? How are the citizens affected? These are seldom discussed topics. You can't even imagine that in today's day and age, what a Superpower Country has to go through when that country goes to war. Even though the war isn't fought in the country.
"Sanctions from the west are already having a major impact on Russia's economy."
~ abc News LIVE
"A 30% loss in value is seen in Ruble."
~ abp News
A study conducted by the Centre for Economic Recovery, claims that in the first four days Russia had to incur expenses to the amount of $7 billion for starting this war. Approximately more than ₹500 billion.
This was only for the first four days. With the continuation of the war, the same study has estimated that this cost can eventually cross $20 billion per day for Russia.
This is now the direct expense borne by the Russian Government. The Russian taxpayers' money is used for fighting this war. This money which would have been used for the development of the country is now used in war.
But this is only the tip of the iceberg.
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