What are the consequences of Western sanctions for the daily life of Russians? Igor Delanoë, Deputy Director of the Franco-Russian Observatory in Moscow, details what has changed since the start of the war.
In turn, major American and European brands announce a temporary withdrawal from Russia. The decision taken in the face of an invasion of Ukraine is seen as one of the most likely consequences for the population.
“These closures have not yet taken effect,” says Igor Delanoe. “They will intervene in the coming days,” he adds.
If McDonald’s restaurants closed their doors on March 9, especially in Moscow, then some establishments sell burgers for several more days, the deputy director of the Franco-Russian observatory believes. In Russia, the American company employs 62,000 people and works with hundreds of local Russian suppliers and partners.
Big brands are closing their doors
Thus, McDonald’s joins the list of American companies that decided to boycott Russia after the invasion of Ukraine. From the oil company Exxon to Apple through Disney, Nike, Ford or GM, the American global giants were the fastest to condemn the war in Ukraine and cease operations in Russia.
However, this is a suspension, not a permanent closure of the signs. Take Ikea, for example, which says it wants to close its furniture stores until May 31st…initially.
To retaliatory measures from Russia?
If the war continues, will the companies choose to extend the suspension or leave their teams?
“The government is taking containment measures to prevent them from leaving the territory. These companies are threatened with nationalization,” Igor Delanoe said on BFMTV.
Yesterday, Russia drew up a list of 59 Western companies that could be nationalized, according to the Russian news agency Izvestia. Vladimir Putin’s party targets companies that have ceased operations in Russia.
They include oil and gas company Shell, automakers Volkswagen and Toyota, and furniture retailer Ikea. This list could be expanded, authorities warn.
Russian countermeasures do not end there. The Kremlin has passed a bill aimed at supervising companies more than 25% owned by foreign groups from “hostile nations.”
Banking difficulties
Another major implication for the Russian population is that some bank cards “work hard,” Igor Delanoe, deputy director of the Franco-Russian observatory in Moscow, tells us. Western sanctions against Russian banks are questionable.
Global credit card giants Visa and Mastercard announced on Saturday, March 5, the suspension of their operations in Russia. In response to this boycott, some banks are considering turning to China’s UnionPay network.
Uninformed population
However, it is difficult to understand how Russian public opinion, which lives in a kind of information fog, reads this. Indeed, the majority of the Russian population is deprived of reliable information about the war waged by the Kremlin.
“If we stick to television and newspapers, we will have a homogeneous story. (…) on social media it is extremely subtle,” Igor Delanoe clarifies, before clarifying that Russians are “massively informing themselves on television, on radio.”