Russia’s war economy fuels rustbelt revival

Russian retailers are in a hurry to create a store in Rustbelt, knocking on new wealth flowing from soldiers’ bonuses and widespread military production.

Shops, restaurants and gyms have opened in Russia’s most difficult regions, which serve as a swimming pool collecting for Vladimir Putin Invasion of UkraineThe economy of a number of countries has created jobs, increase wages and inject unprecedented money for historically poor cities and cities.

“War is a great equalizer in one way,” said Expert Jan Nis Round Russia’s economy With the German Institute of International and Security Affairs. “It gives a lot of money for people who do not have many prospects for peace, people who have no education and live in deprived regions.”

Since the war in Ukraine is dragged its fourth year to supply state orders army The residents of poor industrial cities of Russia have given good paid factory jobs with weapons and clothes. Conscripts – who tend to stem from unfavorable areas. Get high bonuses to join the army and their families get payments.

“The demand is up in new areas where it was not before, because people were just very poor to go to some big retail shop,” said the clur.

Russian retailers and entertainment companies have caught the trend, starting to expand the western sanctions and internal interest rates have been provided with high-quality practical activities.

The group of X5, which belongs to the chains of the most famous supermarkets in Russia, says it is expanding in the Far East East, recently promoted Russia’s import partners, who are looking for alternative trade routes.

The number of retail and hospitality jobs near the Southeast has almost doubled until January 2025, according to the financial times analysis of vacancies installed by the Russian business sample.

Supermarket Pierochka, fast food network ROSTIC and Retail Seller M.Videoo-Eldorado are among Russian business, recruiting new employees.

Last year, M. Belides Eldorado opened 100 new places, which include 25 new places, Volzhsk, all cities with more than 100,000 inhabitants in the Russian Industrial Industrial Center.

In the winter of 2021, Russia’s unemployment rate fell from 4.4 percent in the same period of 2021, as the state has poured money on new vacancies, as well as supporting industrial places, which make clothes, food and fuel, as well as supported industrial locations.

Salaries have also increased in the unrelated industry, as the already strong labor market has already left the employees collected in the army or escape abroad to avoid conscription.

Russia’s Central Rules of Russia offers RBS3MN ($ 35,600) as a new army recruits bonus, which is more than three times more than three times in the region. Traditionally, nominal income in the unfavorable Republic increased by almost 80 percent to 2021 to 2024, compared to the Russian State Statistics Agency, about 60 percent of Moscow.

“The [army] Payments are huge, so those who didn’t even think they could do it as a high level of smartphone, “said Sergey Polovnikov, head of the Russian content group Sergei Polovnikov.

One local personnel of the Russian Central Krebocksar, who asked not to be not mentioned, said to FT, he saw a noticeable difference in the number of people gathered in his city.

“You can take half an hour with a quick food chain this days,” he said. “In some better restaurants, it is necessary to order a table in advance, which was definitely not here.”

He noted that the increase in disposable income has become complicated by the fact that the large ticket shopping loans have been recognized for many Russians, when the country’s central bank highly appreciates to reduce stable inflation. Russia’s consumer prices last year increased by 9.5 percent, up to 7.4 percent of 2023 show that official statistical data show.

“I have a good income, but I can’t buy an apartment or car, so I spend to buy a little better quality of food and eat a little more often,” he added.

One woman from neighboring Shumerlaya, which has more than 30,000 people, noticed more beauty salons in its neighborhood. “Almost all women are now getting manicure [ . . .] There are more nail professionals and places that offer hardware cosmetology or even some basic injections. “

“We even received a private dog care service in our city, now it is a real indicator,” he said.

Bigger cities have begun to involve businesses that have been previously restricted to Moscow. Spirit Fitness, gym chain, where the monthly membership fee costs up to $ 70, opened a branch in Ural, Chelyabinsk.

“People now have money to spend on them,” said Mikhail Richagov, a spokesman for the Association of Mortan Centers. “They can pay more to maintain their health, and the growth of fitness industry confirms it.”

Falling soldiers’ payments were another factor that moves household incomes. In Inspagram, one widow was distributed that she bought property in Vladivostok with money received for her husband’s death. “How much does life cost? … 12 million rubles,” he wrote, or little more than $ 140,000.

Laura Solanko, Finnish’s “Transition Economy” Institute Laura Solanko predicts that the first will be able to lose their income at the end of Russia’s war, but some developments in the country’s region. economy will remain.

“The regions that benefit from the change of foreign trade will not disappear quickly,” he said. “As well as individuals with production and military-industrial enterprises, as Russia must go again for many years.”

Additional Chris Cook reports