Russia’s largest clothing manufacturer closes factories: management cited the fact that many employees went to war against Ukraine, making production unprofitable.

7 comments

1. This is really interesting from an economics view point.

   What Russia is seeing is known as “Dutch disease”, where a single, highly profitable sector of the economy attracts too many resources and employees, which leads to the decline of other industries.

   It’s usually a result of resource extraction industries (primarily oil and gas). Russia is now seeing it in the military production / human sausage factory industries.

   Needless to say, taking personnel from productive industries and forcing them through a fine mesh screen is not conducive to long term economic growth.

2. *Seems like dying for motherland is more important than producing clothes for their own citizens.*

3. While the Russian economy is growing, military industry cannibalising the civilian economy is not a desirable form of growth.

4. There are likely 2 factors not mentioned. 1 the factories where never modernized, as the owners kept the money. Thus .aking them unproductive outside of Russia where they had a stranglehold. 2 India wants to export finished products such as clothing. Russia is probably buying clothing using its horde of rupees.

5. Well, in a way putin will have his way in having his soviet reunion. People will be waiting in line again for goods.

6. They should switch to making body bags, or fire hoses. Business will be booming 💥💥

7. How hard is it to manufacture potato sacks?

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