As Foreign Companies Withdraw, 200,000 in Moscow About to Face Unemployment

Since Russia invaded Ukraine in late February, many foreign companies in Russia have decided to withdraw or suspend their operations in protest of Russia’s aggression. Which inflicted a serious blow on the Russian economy.
Moscow Mayor Sergei Sobyanin mentioned in his blog on the 18th that as more and more Western companies withdraw, 200,000 people in Moscow will be at risk of unemployment. Sobyanin said that in response, the Russian authorities will allocate 3.36 billion rubles to support local employees affected by the evacuation of foreign enterprises, hoping to support more than 58,000 employees that are working for foreign enterprises. At present, about 12,500 people are undergoing retraining, and the rest are expected to get temporary jobs in public work projects. According to Yale School of Management researchers, more than 750 foreign companies have reduced their operations in Russia.
As more sanctions are imposed from the EU, the United States and other regions, the Russian economy is being dragged down onto the verge of defaulting on its foreign debt. Meanwhile, inflation is soaring in Russia. Some economists predict that the Russian economy will fall into a severe recession.

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Translator: MOS Education Team – Winsun
Design&editor: Hbamboo

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