“It seems likely that the damage to Russia’s productive capacity from the loss of western technology and key supplies will increase over time,” writes independent economist Roger Bootle.
“Moreover, the medium-term outlook for its supply capacity has been severely dented by the loss of so many soldiers in the Ukraine war – and more importantly, by the exodus of so many well-qualified young people who wished to escape both the Putin regime and the prospect of call-up.”
This will be a very tough pill for Russia to swallow. Traditionally Russia was the country with the industrial capacity, know how and wealth of the 2. Now the roles are reversed on all counts.