Cities across Russia were outwardly calm although there were lines of people looking to stock up on products – mostly high-end items and hardware – before shelves empty or prices rise further. EPA
Cities across Russia were outwardly calm although there were lines of people looking to stock up on products – mostly high-end items and hardware – before shelves empty or prices rise further. EPA
Cities across Russia were outwardly calm although there were lines of people looking to stock up on products – mostly high-end items and hardware – before shelves empty or prices rise further. EPA
Cities across Russia were outwardly calm although there were lines of people looking to stock up on products – mostly high-end items and hardware – before shelves empty or prices rise further. EPA

Business

Economy

Russians rush to shop amid fears for the future and a free-falling rouble

'Heartbreak' in the queues as retailers prepare to abandon market

Reuters

March 06, 2022

  • English
  • Arabic

In bright sunshine, a long queue of shoppers snaked outside an Ikea store near Moscow this week. Similar scenes were repeated across Russia as families rushed to spend their fast-depreciating roubles at the Swedish retailer which is leaving the country.

Russians are bracing for an uncertain future of spiralling inflation, economic hardship and an even sharper squeeze on imported goods.

The rouble has lost a third of its value this week after western sanctions were imposed to punish Russia for invading Ukraine. The moves froze much of the central bank's $640 billion in reserves and barred several banks from global payments system Swift, sending the rouble into free-fall.

Cities across Russia were outwardly calm, with little sign of the crisis in the financial sector and markets. Except for the lines of people looking to stock up on products – mostly high-end items and hardware – before shelves empty or prices climb further.

"The purchases that I planned to make in April, I urgently bought today. A friend from Voronezh also told me to buy for her," shopper Viktoriya Voloshina told Reuters in Rostov, a town 217 kilometres from Moscow.

Ms Voloshina said she was looking for office shelves and tables. "My heart is breaking," she said.

Dmitry, another Moscow resident, lamented rapid price rises. "The watch I wanted to buy now costs around 100,000 roubles, compared to 40,000 around a week ago," he said.

But the spending burst this week may peter out.

While there is no palpable sign of panic, the wipeout of rouble savings and the doubling of interest rates to 20 per cent will squeeze mortgage holders and consumers.

Financial conditions – reflecting availability of credit in the economy – have tightened this year, which Oxford Economics predicted would shrink domestic demand by 11 per cent by year-end and increase unemployment by 1.9 percentage points in 2023.

Damage after the shelling of buildings in central Kharkiv, Ukraine. EPA
Damage after the shelling of buildings in central Kharkiv, Ukraine. EPA
Workers from a local construction company weld anti-tank obstacles to be placed on roads around Kyiv as Russia's invasion of Ukraine continues. Reuters
Workers from a local construction company weld anti-tank obstacles to be placed on roads around Kyiv as Russia's invasion of Ukraine continues. Reuters
Anti-war protesters attach sunflowers to barriers in front of the Russian embassy. Reuters
Anti-war protesters attach sunflowers to barriers in front of the Russian embassy. Reuters
Ukrainian volunteers prepare food for displaced people outside Lviv railway station in western Ukraine. AP
Ukrainian volunteers prepare food for displaced people outside Lviv railway station in western Ukraine. AP
A Ukrainian soldier holds an anti-tank launcher north-east of Kyiv. AFP
A Ukrainian soldier holds an anti-tank launcher north-east of Kyiv. AFP
Ukrainian refugees rest at Warsaw East train station in Poland. EPA
Ukrainian refugees rest at Warsaw East train station in Poland. EPA
Children look out from a carriage window as a train prepares to depart from a station in Lviv to the town of Uzhhorod near the border with Slovakia. AFP
Children look out from a carriage window as a train prepares to depart from a station in Lviv to the town of Uzhhorod near the border with Slovakia. AFP
A girl who fled Ukraine is reunited with her father in Medyka, south-eastern Poland. AP Photo
A girl who fled Ukraine is reunited with her father in Medyka, south-eastern Poland. AP Photo
Tears outside a house damaged by a Russian airstrike in Gorenka, on the outskirts of Kyiv. AP Photo
Tears outside a house damaged by a Russian airstrike in Gorenka, on the outskirts of Kyiv. AP Photo
A civil defence member is poised to shoot as a vehicle approaches a checkpoint in Gorenka. AP Photo
A civil defence member is poised to shoot as a vehicle approaches a checkpoint in Gorenka. AP Photo
A Ukrainian civil defence member in the garden of a house damaged by a Russian airstrike. AP Photo
A Ukrainian civil defence member in the garden of a house damaged by a Russian airstrike. AP Photo
Members of the US Army 3rd Infantry Division board a plane bound for Germany in Savannah, Georgia. EPA
Members of the US Army 3rd Infantry Division board a plane bound for Germany in Savannah, Georgia. EPA
Prayers for peace in Ukraine at the Vatican's Saint Peter's Square. AFP
Prayers for peace in Ukraine at the Vatican's Saint Peter's Square. AFP
A woman (right) hugs an arriving passenger from a train carrying refugees at Berlin's central station. EPA
A woman (right) hugs an arriving passenger from a train carrying refugees at Berlin's central station. EPA
Firefighters battle a blaze in a Kharkiv police building hit by shelling. AFP
Firefighters battle a blaze in a Kharkiv police building hit by shelling. AFP
A Ukrainian woman makes a phone call after crossing the Slovakian border. AFP
A Ukrainian woman makes a phone call after crossing the Slovakian border. AFP
A doctor takes shelter in the basement of a Kyiv perinatal centre. Reuters
A doctor takes shelter in the basement of a Kyiv perinatal centre. Reuters
Debris which locals say was caused by shelling in separatist-controlled Horlivka, Donetsk. Reuters
Debris which locals say was caused by shelling in separatist-controlled Horlivka, Donetsk. Reuters
MPs in London give a standing ovation to Ukraine ambassador Vadym Prystaiko, who was in the public gallery. AP
MPs in London give a standing ovation to Ukraine ambassador Vadym Prystaiko, who was in the public gallery. AP
Distraught women and children fleeing Ukraine wait to enter Poland at the Korczowa crossing. Getty
Distraught women and children fleeing Ukraine wait to enter Poland at the Korczowa crossing. Getty
Newborn Ivan lies next to his mother as they shelter in the basement of a Kyiv perinatal centre. Reuters
Newborn Ivan lies next to his mother as they shelter in the basement of a Kyiv perinatal centre. Reuters
Firefighters hand water to people in a Ukrainian train full of refugees in Przemysl, Poland. Reuters
Firefighters hand water to people in a Ukrainian train full of refugees in Przemysl, Poland. Reuters
Ukrainian refugees queue to file for residency permits at Prague's police headquarters. AFP
Ukrainian refugees queue to file for residency permits at Prague's police headquarters. AFP
Firefighters work to contain a blaze in buildings housing the Kharkiv regional police department. AFP
Firefighters work to contain a blaze in buildings housing the Kharkiv regional police department. AFP
A woman and her children sit in a tent in the Kyiv subway, using it as a bomb shelter. AP
A woman and her children sit in a tent in the Kyiv subway, using it as a bomb shelter. AP
Firefighters work to extinguish a blaze at the Kharkiv National University building, which city officials said was damaged by Russian shelling. Reuters
Firefighters work to extinguish a blaze at the Kharkiv National University building, which city officials said was damaged by Russian shelling. Reuters
An elderly woman comforts a child as they take shelter inside an underground station in Kyiv. Reuters
An elderly woman comforts a child as they take shelter inside an underground station in Kyiv. Reuters
People queue at a pharmacy in central Kyiv. Reuters
People queue at a pharmacy in central Kyiv. Reuters
A woman is consoled by a volunteer after fleeing from Russia's invasion of Ukraine, at the border crossing in Siret, Romania. Reuters
A woman is consoled by a volunteer after fleeing from Russia's invasion of Ukraine, at the border crossing in Siret, Romania. Reuters
A Ukrainian civilian in the city of Zhytomyr practises throwing petrol bombs. Reuters
A Ukrainian civilian in the city of Zhytomyr practises throwing petrol bombs. Reuters
Ukrainian President Volodymyr Zelenskyy poses after an interview with Reuters in Kyiv. Reuters
Ukrainian President Volodymyr Zelenskyy poses after an interview with Reuters in Kyiv. Reuters
A blast is seen at Kyiv's TV tower. Reuters
A blast is seen at Kyiv's TV tower. Reuters
A girl in Siret, Romania, covers herself with a blanket after fleeing from Ukraine. Reuters
A girl in Siret, Romania, covers herself with a blanket after fleeing from Ukraine. Reuters
Ukraine's ambassador to the US, Oksana Markarova, acknowledges applause from US first lady Jill Biden as they attend President Joe Biden's first State of the Union address in Washington. AFP
Ukraine's ambassador to the US, Oksana Markarova, acknowledges applause from US first lady Jill Biden as they attend President Joe Biden's first State of the Union address in Washington. AFP
A man walks past the remains of Russian military vehicles in Bucha, close to Kyiv. AFP
A man walks past the remains of Russian military vehicles in Bucha, close to Kyiv. AFP
Civilians cross a river on a blown-up bridge on Kyiv's northern front. Defending the capital is a 'key priority', Ukraine's president has said. AFP
Civilians cross a river on a blown-up bridge on Kyiv's northern front. Defending the capital is a 'key priority', Ukraine's president has said. AFP
Russian aircraft on the ground at Luninets Airbase, Belarus, about 50 kilometres north of the Ukrainian border. AFP
Russian aircraft on the ground at Luninets Airbase, Belarus, about 50 kilometres north of the Ukrainian border. AFP
People look at the gutted remains of Russian military vehicles on a road in the town of Bucha. AP
People look at the gutted remains of Russian military vehicles on a road in the town of Bucha. AP
A woman with a child who fled from the war in Ukraine reunite with their family after crossing the border in Medyka, Poland. AP
A woman with a child who fled from the war in Ukraine reunite with their family after crossing the border in Medyka, Poland. AP
Animal keeper Kirilo Trantin comforts an elephant at Kyiv Zoo. AP
Animal keeper Kirilo Trantin comforts an elephant at Kyiv Zoo. AP
An armed man stands by the remains of a Russian military vehicle in Bucha. AP
An armed man stands by the remains of a Russian military vehicle in Bucha. AP
Ukrainian families say goodbye as they prepare to board a bus to Poland at Lviv, western Ukraine. AP
Ukrainian families say goodbye as they prepare to board a bus to Poland at Lviv, western Ukraine. AP
Paramedics move a man who was wounded by shelling in a residential area of Mariupol, south-eastern Ukraine. AP
Paramedics move a man who was wounded by shelling in a residential area of Mariupol, south-eastern Ukraine. AP
Rescuers work at the site of a Russian strike in Zhytomyr. Reuters
Rescuers work at the site of a Russian strike in Zhytomyr. Reuters
US actor and director Sean Penn attends a press briefing at the Presidential Office in Kyiv. Reuters
US actor and director Sean Penn attends a press briefing at the Presidential Office in Kyiv. Reuters
Demonstrators participate in a protest against Russia’s invasion of Ukraine at Lafayette Square in Washington. AFP
Demonstrators participate in a protest against Russia’s invasion of Ukraine at Lafayette Square in Washington. AFP
Ukrainian soldiers rest while others eat near the front line with Russian troops in northern Kyiv. AP
Ukrainian soldiers rest while others eat near the front line with Russian troops in northern Kyiv. AP
A barricade made of trams, buses and sand bags is seen through the window of car in the northern part of Kyiv. AP
A barricade made of trams, buses and sand bags is seen through the window of car in the northern part of Kyiv. AP
Members of the European Parliament applaud after Ukrainian President Volodymyr Zelenskyy's speech at a special session to debate its response to the Russian invasion of Ukraine. Reuters
Members of the European Parliament applaud after Ukrainian President Volodymyr Zelenskyy's speech at a special session to debate its response to the Russian invasion of Ukraine. Reuters
Ambassadors and diplomats walk out as Russia's Foreign Minister Sergey Lavrov (on screen) speaks during a recorded message at the 49th session of the UN Human Rights Council in Geneva. EPA
Ambassadors and diplomats walk out as Russia's Foreign Minister Sergey Lavrov (on screen) speaks during a recorded message at the 49th session of the UN Human Rights Council in Geneva. EPA

Zach Witlin, an analyst at Eurasia Group, notes sanctions are already hitting consumers with price rises and disruptions to digital payment services.

While consumers are not the direct target, "fear and caution are exaggerating the impact", with the departure of foreign brands such as Ikea creating a snowball effect, he said.

Imports to isolation

Cars, machinery and car parts comprised nearly half of Russia's $293bn imports last year, according to the Federal Customs Service.

The government's strenuous import cutbacks in recent years mean 2021 imports remained 7 per cent below 2013 levels, before the first sanctions following Russia's 2014 annexation of Crimea.

It has also beefed up trade with China, which is the only country to boost exports to Russia since 2014.

But further declines look inevitable as the rouble plunges, insurers refuse cover to businesses exporting to Russia and shippers back away from Russian ports whether to export or to import.

While only a few Russian companies are the targets of sanctions "all of them will feel the chilling effect," said Matt Townsend, sanctions partner at law firm Allen & Overy. "This is why sanctions are a very effective measure to isolate a country."

The immediate economic shock will cause a 35 per cent GDP contraction in the second quarter and a 7 per cent decline in 2022, JPMorgan predicted. But "growing political and economic isolation will curtail Russia's growth potential in years to come," it said.

That may come about if restrictions "limit the acquisition of technology needed to support Russia's highest value industries," RBC Global Asset Management said.

The Biden administration is preparing rules to weaken Moscow's ability to import smartphones, aircraft parts and auto components.

The sanctions have hit me very hard. Prices are already up around 20% ... it's a fact that you already can't buy some medicines. Things will get worse. Today my family and I are leaving Russia
Lidia,
freelance worker from Rostov

But multinationals, from tech firms Apple and Microsoft to consumer goods producers Nike and Diageo, have severed links with Russia, meaning shoppers will have limited access to the consumer goods they have grown accustomed to over three decades.

Chinese companies, so far staying put, could grab some market share but they, too, could fall prey to secondary sanctions as many of their products such as smartphones use technology of US origin.

On Women's Day
On Women's Day
Company profile

Company: Eighty6 

Date started: October 2021 

Founders: Abdul Kader Saadi and Anwar Nusseibeh 

Based: Dubai, UAE 

Sector: Hospitality 

Size: 25 employees 

Funding stage: Pre-series A 

Investment: $1 million 

Investors: Seed funding, angel investors  

SERIE A FIXTURES

Saturday (UAE kick-off times)

Atalanta v Juventus (6pm)

AC Milan v Napoli (9pm)

Torino v Inter Milan (11.45pm)

Sunday

Bologna v Parma (3.30pm)

Sassuolo v Lazio (6pm)

Roma v Brescia (6pm)

Verona v Fiorentina (6pm)

Sampdoria v Udinese (9pm)

Lecce v Cagliari (11.45pm)

Monday

SPAL v Genoa (11.45pm)

BMW M5 specs

Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor

Power: 727hp

Torque: 1,000Nm

Transmission: 8-speed auto

Fuel consumption: 10.6L/100km

On sale: Now

Price: From Dh650,000

Who has been sanctioned?

Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.

Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.

Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.

Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.

The biog

Name: Shamsa Hassan Safar

Nationality: Emirati

Education: Degree in emergency medical services at Higher Colleges of Technology

Favourite book: Between two hearts- Arabic novels

Favourite music: Mohammed Abdu and modern Arabic songs

Favourite way to spend time off: Family visits and spending time with friends

EA Sports FC 26

Publisher: EA Sports

Consoles: PC, PlayStation 4/5, Xbox Series X/S

Rating: 3/5

Star%20Wars%3A%20Episode%20I%20%E2%80%93%20The%20Phantom%20Menace
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Big%20Ape%20Productions%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20LucasArts%3Cbr%3E%3Cstrong%3EConsoles%3A%3C%2Fstrong%3E%20PC%2C%20PlayStation%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

Company profile

Date started: Founded in May 2017 and operational since April 2018

Founders: co-founder and chief executive, Doaa Aref; Dr Rasha Rady, co-founder and chief operating officer.

Based: Cairo, Egypt

Sector: Health-tech

Size: 22 employees

Funding: Seed funding 

Investors: Flat6labs, 500 Falcons, three angel investors

While you're here
88 Video's most popular rentals

Avengers 3: Infinity War: an American superhero film released in 2018 and based on the Marvel Comics story.  

Sholay: a 1975 Indian action-adventure film. It follows the adventures of two criminals hired by police to catch a vagabond. The film was panned on release but is now considered a classic.

Lucifer: is a 2019 Malayalam-language action film. It dives into the gritty world of Kerala’s politics and has become one of the highest-grossing Malayalam films of all time.

Saudi National Day
UAE currency: the story behind the money in your pockets
On Women's Day
Notable Yas events in 2017/18

October 13-14 KartZone (complimentary trials)

December 14-16 The Gulf 12 Hours Endurance race

March 5 Yas Marina Circuit Karting Enduro event

March 8-9 UAE Rotax Max Challenge

Roll%20of%20Honour%2C%20men%E2%80%99s%20domestic%20rugby%20season
%3Cp%3E%3Cstrong%3EWest%20Asia%20Premiership%3C%2Fstrong%3E%0D%3Cbr%3EChampions%3A%20Dubai%20Tigers%0D%3Cbr%3ERunners%20up%3A%20Bahrain%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EUAE%20Premiership%3C%2Fstrong%3E%0D%3Cbr%3EChampions%3A%20Jebel%20Ali%20Dragons%0D%3Cbr%3ERunners%20up%3A%20Dubai%20Hurricanes%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EUAE%20Division%201%3C%2Fstrong%3E%0D%3Cbr%3EChampions%3A%20Dubai%20Sharks%0D%3Cbr%3ERunners%20up%3A%20Abu%20Dhabi%20Harlequins%20II%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EUAE%20Division%202%3C%2Fstrong%3E%0D%3Cbr%3EChampions%3A%20Dubai%20Tigers%20III%0D%3Cbr%3ERunners%20up%3A%20Dubai%20Sharks%20II%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDubai%20Sevens%3C%2Fstrong%3E%0D%3Cbr%3EChampions%3A%20Dubai%20Tigers%0D%3Cbr%3ERunners%20up%3A%20Dubai%20Hurricanes%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets

Tuesday results:

  • Singapore bt Malaysia by 29 runs
  • UAE bt Oman by 13 runs
  • Hong Kong bt Nepal by 3 wickets

Final:
Thursday, UAE v Hong Kong

Dubai World Cup factbox

Most wins by a trainer: Godolphin’s Saeed bin Suroor(9)

Most wins by a jockey: Jerry Bailey(4)

Most wins by an owner: Godolphin(9)

Most wins by a horse: Godolphin’s Thunder Snow(2)

if you go

The flights

Emirates have direct flights from Dubai to Glasgow from Dh3,115. Alternatively, if you want to see a bit of Edinburgh first, then you can fly there direct with Etihad from Abu Dhabi.

The hotel

Located in the heart of Mackintosh's Glasgow, the Dakota Deluxe is perhaps the most refined hotel anywhere in the city. Doubles from Dh850

 Events and tours

There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com

For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art. 

More information

For ideas on planning a trip to Scotland, visit www.visitscotland.com

The specs

Price: From Dh529,000

Engine: 5-litre V8

Transmission: Eight-speed auto

Power: 520hp

Torque: 625Nm

Fuel economy, combined: 12.8L/100km

UAE currency

Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199

Updated: March 06, 2022, 3:30 AM`
EconomyRussia