"No New Releases in Cinemas, No Airbags in New Cars"… Russia Returns to the 1980s

Brand Withdrawals Continue Across Industries..."Back to the 1980s"
Russian Car Sales in April Drop by About 80%

A McDonald's store in Moscow, Russia, one day before closing. Photo by AP, Yonhap News Agency

[Asia Economy Intern Reporter Kim Se-eun] Amid ongoing Western sanctions against Russia for its invasion of Ukraine, it has been confirmed that Russians are experiencing disruptions in their daily lives.

On the 20th (local time), the British daily The Guardian, citing Yale School of Management, reported that about 1,000 foreign brands have either exited or scaled down their operations in Russia since the invasion of Ukraine.

On the 16th, McDonald's also announced its withdrawal from the Russian market. McDonald's had been regarded as a symbol of Russia's openness and market economy.

Access to social networking services (SNS) such as Instagram and Facebook has also been blocked. Moreover, Russia is facing international sanctions across industries, including the inability to import technology, semiconductors, and automobile parts.

As a result, Russia's automobile industry is said to have regressed to the 1980s. Due to the current import ban, new cars are no longer required to be equipped with airbags.

One of the indicators used to gauge economic conditions, automobile sales, fell by about 80% in April, marking the largest decline ever recorded.

Economic experts forecast that Russia's economic size will shrink by approximately 8 to 12% compared to the previous year. Furthermore, the Russian Central Bank predicts that this year's inflation rate will reach 18 to 23%.

According to the Russian polling agency Levada Center, 85% of Russians responded that it is a difficult time to purchase luxury goods or obtain loans, and 60% said they cannot save money.

Some Moscow citizens are also concerned about cultural isolation.

With film companies such as Disney and Sony halting the release of new films in Russia, cinemas in Moscow are currently re-screening old Hollywood movies or showing Chinese action films.