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Avocado Economy: Why Russia can't produce anything (kamilkazani.substack.com)
10 points by KoftaBob on Aug 10, 2023 | hide | past | favorite | 3 comments


"Russia can't produce anything" - Except for oil, gas, potassium, nickel, etc.

You don't need a huge essay to explain that an economy that for the last 25 years was focused on open international commodities trading has become focused on areas that it has a comparative advantage in and has had other places decline to the point of being non-competitive. All the window dressing about "importzamesheniye" is the Russian analogue of Saudis building NEOM, it's mostly for politicians to pretend that they are doing something other than selling the natural resources.

It's also the same reason why the sanctions are likely not going to get much tougher(remember that most of the goods that are supposedly "banned" are now simply re-exported via Armenia or other ex-USSR countries at big markups), because people need these Russian commodities on the global markets one way or another and the only way they make it onto the global market is if Russia gets what it wants from the global market as well(which is mostly expensive German cars for the upper class and some machines it needs to maintain industrial production in key areas).


[2022]

As always, read Kamil Kazani with a huge grain of salt. I am trained in an academic field that forms part of Russian areal studies, and I have seen him make factual errors about my particular subdiscipline time and time again. Basically, his content is the dangerous kind that is so entertaining about a somewhat obscure subject, ordinary readers automatically take it as authoritative.


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