SOVEREIGN ECONOMY: TOP EVENTS OF THE WEEK
The Russian government's priority is to curb the rise in prices. Vladimir Putin stated this during a council meeting for strategic development and national projects. The Bank of Russia has already raised the key interest rate to mitigate inflationary risks and does not exclude further increases. The flip side of this strategy is the increase in the cost of loans and the cooling of the economy.
The Department of Energy is trying to keep the rise in diesel fuel prices under control. The Department of Energy has recommended oil companies to restrain the wholesale prices of diesel fuel. In addition to the price issue, the Department of Energy acknowledges that "some difficulties with the regularity of petroleum product deliveries" have arisen due to high railway congestion.
Russian enterprises are facing a shortage of skilled workers. The deficit of highly qualified engineers and workers in only "Rostec" enterprises amounts to tens of thousands of people, said Nikolai Volobuev, Deputy General Director of the state corporation. Further mobilization of active workforce from the national economy accelerates crisis phenomena in the future.
A significant number of migrant workers may leave Russia. Up to a third of all migrant workers could leave Russia due to declining incomes caused by the weakening of the ruble against the dollar and the euro. According to a survey among the Uzbek diaspora, 50% of respondents are considering leaving Russia due to the rise in the dollar exchange rate, 25% do not plan to do so, and 25% have not yet decided.
The proportion of Russians planning to save on food and essential goods has increased. The percentage of Russians planning to reduce their expenses on food and essential goods for saving has risen by three percentage points - from 16% in June to 19% in July, according to a study by Romir Holdings. Only 8% of respondents were unaffected by economic problems in the country.