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The technological deficit embracing Putin’s army is shaking his economy



We have heard many times about the sanctions imposed on Russia due to the conflict in Ukraine, but … what if it is not the economy or the Ukrainian army itself that can stop Putin’s war machine, but the technology that could be his real coup? Thus, the arsenal of technological sanctions promoted by the United States and the European Union has a deep, long-term charge that hinders the military and non-military use of technology in Russia. And all this ends up having a devastating effect on the Kremlin’s strategic plans. And the last mantra might be to call three hundred thousand reservists, which might be a million, according to the Duma documents, meaning less active population to sustain the economy, and with some Russian retirees needing economic support than those. Vladislav Inozemtsev, director of the Moscow Research Center for Post-Industrial Studies, warns that Putin’s mobilization will have “really disastrous consequences.” Families will be left without income and in large cities … the loss of even a few employees can cause disproportionate harm. Russia is an economy of cities and large corporations. In addition, a recent Yale University report described the Russian economy as an “internally corrupt behemoth, dependent on Western technology.” Indeed, the departure of software giants and the lack of foreign chips, connectors, transistors and components affects military equipment – 450 components were found from Western manufacturers – and forced the use of equipment from the Soviet era, while Ukraine receives the latest technology from the West. From hypersonic missiles to space, the oil and gas industries rely on this technology. Related News Russia and China embark on strategic control of the seas Alexia Columba Jerez uniting commercial and military ambition, the two powers expanded a network of influence around global shipping “hotspots”, “choke points” Ultimately, what is at stake is a war against time, and as Juan Carlos points out Martinez Lazaro, Professor of Economics at IE University, “Every day that the conflict continues is another nail in the coffin that is being put in. Russia has natural resources and energy, but where it will collapse is the technological part. The productive apparatus will slow down and will not be able to compensate for that. By developing his own technology in such a short period of time.” Since then, as Martinez asserts, “It is estimated that 75% of the technology he used came from the West.” Between butter and cannons, Martinez says, Putin chose a war economy, and that could have an effect because military spending is up 130%. One example is that Western export controls found Iskander-M cruise missiles to rely on a British computer-controlled design. The components of Russia’s military tactical communications come from the United States, the United Kingdom, Germany, the Netherlands, Japan and Israel. The same applies to precision weapons and armored vehicles. Tip of the iceberg However, debate remains for many as to whether or not the sanctions have a real effect. The X-rays that can be captured today, notes Eszter Wirth, professor of international economics at Comillas iCADE, notes that “at first glance, the Russian economy has resisted sanctions better than expected.” Martinez asserts that the Russian economy is doing well from the point of view of macro indicators, some indicators even show that it is much better than it was before the conflict. Although bad data indicates that the Russian economy will contract by 6%, the Ukrainian economy is expected to contract by 35%. In short, the sanctions did not stop the war in the short term, but the damage that would be brutal if the sanctions continued is a long-term thing. And Elvira Nabiulina, commissioner of the Russian Bank, warned of this. Wirth adds that “the impact of displaced people’s fear of conscription has not yet been felt. But according to the UK Ministry of Defense, the number of Russians trying to avoid Putin’s conscription is higher than the number of soldiers Russia sent to the front line in February. Those fleeing the country are precisely the most educated.” , so the country will suffer a major brain drain. The Russian Association for Electronic Communications estimates that between 50,000 and 70,000 computer scientists have left Russia. Another 100,000 are planning to do so. According to Professor Comillas, some of the sectors most affected by the sanctions are the automotive sector, due to the lack of parts and components.They are also needed to repair and maintain equipment for civilian use, such as planes, trains, and subways, or excavators that extract minerals and hydrocarbons. “It is also said that the Russian military is looking for standard components by smashing refrigerators and washing machines,” Wirth notes. High-tech to prevent the spread of 5G networks, artificial intelligence and data centers or the issuance of new plastic cards in Mir, Russia’s internal payment system.A shortage of ships could lead to delays yr plans to drill in the arctic. However, an investigation conducted by Reuters in cooperation with the British Royal United Services Institute of the “research center”, revealed that Western-made electronic components continue to cross the Russian border. More than a hundred countries do not apply the ban. Even Russian trips to Uzbekistan are organized for the purchase of Visa cards. Wirth explains that “the Russian Military Procurement Department has been developing alternative methods since the Cold War, such as unregulated electronic markets or front companies, just as North Korea or Iran have done. But, it is almost impossible to keep such a large country afloat on the basis of smuggled products.” Despite everything, Putin has worked for years to achieve digital supremacy and de-dollarization of his trade, but the industry has continued to show global dependency.Baikal Electronics and the Moscow SPARC Technology Center (MCST) are two Russian manufacturers of home processors, striving to become viable alternatives However, they lagged behind because they consume too much energy and perform only simple tasks. The state approach is inadequate. For this reason, Putin announced that he would spend 115 million to make chips, but this pales in comparison to the 45 billion in the European Union, and it is too late. As for China, it will play an active role in Russia’s technological future, as long as it does not jeopardize its ambitions and dependence on foreign countries. Dolly ‘Chernozem’, the other black gold with which Putin can take over the world’s store. Big crisis “Putin can put pressure on the West to the point that European citizens who are pressured by the crisis are asking their politicians to end the sanctions. For Professor Martinez, “Putin risks everything until the end of the year, because next year his situation will be even more vulnerable, as well as his ability to blackmail.”

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