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Russia braces for economic upheaval as Ukraine war sanctions start to bite

Faced with a shortage of imported parts in factories, authorities eased safety and emission standards for locally produced cars in May -- including dropping the requirement for airbags.

Andrea Palasciano (Agence France-Presse) (The Jakarta Post)
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Moscow
Fri, June 3, 2022

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At his garage in the south of Moscow, 35-year-old mechanic Ivan is starting to worry.

With billions of dollars in financial reserves and money still coming in from oil and gas exports, Russia has yet to feel the full impact of the barrage of Western sanctions imposed over its offensive in Ukraine.

But Ivan sees storm clouds on the horizon.

The foreign parts he needs to fix his clients' cars are getting harder to find, and prices have jumped by at least 30 percent after many brands halted exports to Russia.

"We're running out of stock. At some point, there won't be anything left," said Ivan, who declined to give his last name when speaking to international media.

"People who have foreign cars are worried, they are wondering what to do in the future," he said.

Faced with a shortage of imported parts in factories, authorities eased safety and emission standards for locally produced cars in May -- including dropping the requirement for airbags.

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