RUSSIA: Secretary of State Brinken says Russia's economy is in 'deficit'
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This came after wages in the Russian economy plummeted. Real wages in Russia fell by 6.1% in May, according to year-on-year figures from the Kyiv University of Economics. The country also recorded the largest decline in real income seen in the last seven years.
The last time the Russians were this bad was in 2015, after the annexation of Crimea in 2015. This has resulted in Western sanctions against Russia and lower oil prices.
In March 2022, the Russian Telecommunications Association predicted that as many as 170,000 IT workers would leave the country as a result of the war in Ukraine.
Russia's Ministry of Internal Affairs confirmed this figure, saying he was short of 170,000 workers in the IT industry as a result of immigration.
Earlier this year, the government exempted computer programmers from mandatory conscription in an attempt to keep as many people in the industry as possible.
Mikhail Mizhinsky, founder of Relocode, a company that helps relocate tech companies, believes that Workers said they were facing a crisis. A difficult choice as many international companies refuse to work with them if they stay in Russia.
He explained to CNBC: I purchased an IT outsourcing product or service and was forced to leave the company.
"Many customers have received letters saying they will terminate their contracts if they do not leave Russia."
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Brain drain is also a serious problem in other professions, including the legal profession.
Scott Antel, an international hospitality and franchising attorney who has worked in Moscow for nearly 20 years, said: The unemployment rate in the country is also rising, according to the report, with the IMF predicting that the unemployment rate will reach 9.3% in 2022.
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This represents an increase of 3.8 million.
The report warned: “The Russian Center for Strategic Studies estimates that by the end of 2022, 63% of Russia's regions will experience a significant increase in unemployment, while 16 The relative increase in unemployment rates in 53 regions will more than double and more than 1.5 times from January to March 2022 average levels.
“The top five industries affected by projected job cuts include transportation and logistics, automobiles, wholesale and e-commerce, timber industry and timber products.
As many as 170,000 IT workers likely left the country (Image: Getty)- a series of sanctions packages implemented by Western allies
The UK government estimates that up to £275 billion worth of Russian assets are currently frozen as a result of UK sanctions, equivalent to 60% of Russia's foreign exchange reserves.
As a result of the measures, Russia was "heading towards its deepest recession since the collapse of the Soviet Union," he said.
