Abibas is back. Russia is once again flooded with low-quality goods and counterfeit goods.
The world continues to expand bans on the supply of a variety of goods to Z-landia, and the Z-authorities say that they are coping with the sanctions. Formally, imports have indeed returned to the pre-war level, but the main thing is not visible behind the dry statistics - the quality of these goods is completely different.
Instead of branded goods, they buy their cheap analogues or counterfeit ones, they actively take Lada again, and the equipment is increasingly repaired, instead of buying a new one.
It is even more difficult for industrial enterprises – the launch of new production facilities is postponed, factories save equipment because spare parts are not available, or switch to simpler equipment.
Numbers: In total, imports of goods and services are estimated at $379 billion in 2023 - almost the same amount ($380 billion) it was before the invasion. It doesn't seem so bad, but at a closer look the growth in imports was mainly not due to consumer demand, but due to the state circumventing sanctions: in 2023, more machinery, equipment, and vehicles, were imported, these categories accounted for $27 billion out of the $30 billion growth in total imports.
Of the consumer spheres, only imports of textiles and footwear have grown. But food products and agricultural raw materials were imported even less than in the first year of the war, as well as chemical products, timber and pulp and paper products.
Secondly, these figures say little about the quality of imported goods.The main increase in imports of goods came from China — as in the 90s, Putinistan began to be filled with the flow of Chinese consumer goods. Asia carries its own goods, but also serves as a trade hub for products from the EU and the US.
Russians have been switching from expensive to affordable brands — even "in fairly sensitive categories, such as alcohol or children's products, where there used to be a high level of distrust in domestic production".
The share of counterfeit goods on marketplaces has increased by 40%. 23% are fake auto parts, that are used more often, as demand for car repairs grow, especially many problems with the maintenance of Chinese brands.
The same increase is observed for the repair of household appliances and electronics, indicating that the quality of equipment is declining or becoming obsolete, and can't be replaced by new. Although on average the incomes of the population grew, so did people's debt to banks. Most of them are pensioners, whose incomes have noticeably decreased.
Not only the population suffers, but also production. Manufacturers were seriously dependent on imported equipment and raw materials. The share of imports in ruZZian products is highest (+ 50%) in textile and pharmaceutical products, electrical equipment, cars and computers. Before the war, about half of the added value in imports came from the EU and North America, and the other half came from China. The reorientation of the market leads to lowering the quality of materials and technologies.
There is an increase in costs due to the lack of alternative suppliers and firms trying to stock up imported components and raw materials. Still, oil companies for example admit not to be working at full capacity, because it will be difficult to find spare parts. Not only repairs, but also modernization and expansion of production are postponed.
Growing problems, because 40% of the machinery and equipment in mining, production of investment, intermediate and consumer goods, agriculture; and even more in energy industry (47%) and construction (45%) are worn out.
Source
@freerussia_report
