The economic sanctions leveled against Russia by the U. S and its
allies are the harshest ever handed down and their effects are being
widely felt in Russia. Special correspondent Ryan Chilcote has been
in Moscow for more than two weeks and has been speaking with Russians
about how their lives are being affected. He sent us this dispatch.
It's the eighth anniversary of Russia's annexation of Crimea and
the Kremlin is throwing a party. It's also three weeks since Russia
launched what it calls its special military operation.
And as far as the Kremlin is concerned, there's a lot to celebrate.
The concert is free. Most of the 81,000 seats taken
level
the main act, appearing in front of signs that read for a world without
Nazism.
For Russia. Across town. There's little to celebrate the mass corporate
exodus that began on February. The 24th is still under way more than
400, the world's biggest brands fleeing so quickly.
They left the window dressing.
This going out of business sale doesn't have many discounts. It doesn't
need to. Of course, People are losing their jobs, and that's bad,
But I hope some other brands move into their niches.
Reeve Goche, meanwhile, is booming. MasterCard and Visa still work
so does cash and that's good news. This is a Russian chain by the
cosmetics come from abroad.
But no one knows for how long in
your life.
Of course, we're a little nervous. All my favorite brands are from
abroad, and they can disappear.
McDonald's is also disappearing when this one first opened 30,000
people lined up
Case you were wondering how popular McDonald's is.
It's 11 15 at night, and all of them have been standing out here
to get inside so full.
Tonight. It's last chance for a happy meal.
This was the very first McDonald's to open in Russia. It was in 1990.
It was, in fact, still the Soviet Union and this is extraordinary
to think that after 32 years they're all closing.
Because of Ukraine. All 847 McDonald's will be shut, putting more
than 60,000 jobs at risk. And for some a way of life, we go to the
city more into the theater and
them.
After that we go to not also it's something like burgers or price
and, yeah, I don't know.
What will happen next? Some of what will happen next has happened
before. In 1998. The ruble lost two thirds of its value over a month,
accelerating inflation to 80 plus percent and Boris Yeltsin's resignation
a year later.
Then, after a decade of unprecedented economic growth, the ruble
fell again in 2014 after Vladimir Putin sent troops to annex Crimea.
According to official statistics, Russian prices rose by 2.1% last
week kind of inflation central banks aimed to see over a year
The official annual inflation rate is running above 12.5%.
A shaman, a French chain with more than 300 supermarkets here as
well stocked for now, one Russian economist says the country may
be headed for Soviet style inflation for the prices don't rise.
But goods disappear.
Just like Americans. Russians are accustomed to an extraordinary
range of groceries in assortment in their supermarkets. And yet in
this 12 days running
Zero white sugar videos circulating on social media show elderly
Russians remember Soviet shortages swooping up sugar
price rose nearly 13% last week, the government says there's no shortage.
Sugar exports are now banned. The opening salvo in the West Economic
War didn't Pierce the Bank of Russia's facade, but cutting off the
central bank's access to more than $300 billion did to private of
more than half of its reserves.
Western sanctions have also taken aim at the Russian Capitals Monument
to capitalism, its financial district called Moscow City.
Freezing its commercial banks out of the global financial system.
Russia's financial system remains in shock.
The Citibank customers are still trying to pull their money out.
Despite interest rates now at 20%. They've just been told this Moscow
branch has run out of cash. Come back after lunch.
The sanctions have also made flying difficult. Leaving Russia isn't
easy. Aeroflot, Russia's national carrier has suspended all international
flights options with other international carriers.
Are limited.
You can still fly from Moscow to places like Israel, Turkey, the
United Arab Emirates and India, But US and nearly all European airspace
is closed two Russian planes
And where it's open. There are still plenty of cancelations. Russia
leases more than 500 W some 800 planes from foreign companies for
fear they'll be seized abroad. Those planes have been rerouted to
domestic destinations.
In the next couple of years. Russia's entire fleet could be grounded.
Sanctions have blocked parts deliveries from Boeing and Airbus.
And remove Chan is a London based economists.
Mark Chang believes sanctions on imported technologies could bring
up to 60% of the Russian industrial complex, the country's lifeblood
to a halt. Politically speaking. What do you think these sanctions
will do? I don't think they'll do much.
We see the remarkable examples of Iran or the New Zealand For example,
both countries around the severe sanctions, both countries lost much
because of the sanctions.
And the political situation didn't change and in certain sense it
was strengthened because of the sanctions. Dimitri Training is a
Moscow based political scientist. He thinks the sanctions are an
opportunity for Russia reform and build a more productive and equitable
society.
If you're able to do that, then Russia will emerge from this crisis
materially poorer.
But spiritually stronger.
And the more coherent if not
Then you're in trouble.
And let's trouble look like
You know, in this country, you should be very careful with the bulk
of your people.
And they may be with you for a very long time. They may be very patient,
more patient than maybe any other people in the world.
But at some point this patients may snap.
As it did in February, 1917
As it did in in the final years of the Soviet Union. Neither analyst
thinks the so called oligarchs are capable of pulling off a Kremlin
coup. The sanctions against them, while painful, they say, won't
change anything.
Most Russians are reluctant to share their views about the conflict
and sanctions. And here's why
On the city square above an underground mall. The day we visit, this
protester unveils a sign that literally, says two words
woman who wants to voice her support for the Russian military has
taken away. The subsequent chill seemed to permeate below.
We've been here a while and it is hard work getting people to talk
to us in this small the reason
But one couple told us the further you get away from this square.
More comfortable. People are going to be
Talking.
Yeah, I don't want to talk about politics. That's a good question
to ask me in the arrival area in another country.
Back at the concert. The live broadcast of President Putin's speech
abruptly cuts to a pre recorded concert.
The Kremlin blamed the staff ooh, on a server problem.
A reminder perhaps that the Kremlin's carefully choreographed PR
campaign doesn't always go according to plans for the PBS news hour.
I'm Ryan Chilcote in Moscow.
Thank you, Ryan and a reminder that news hours coverage of Russia