Russian industrial giants warn of bankruptcy amid sanctions impact

More than 20 major Russian industrial companies, including those in the construction, automotive, and household appliance sectors, have warned they are on the brink of bankruptcy and could halt operations. In a letter to Anton Alikhanov, head of the Ministry of Industry and Trade, the companies cited their inability to procure essential raw materials from abroad, even from countries friendly to Russia, due to sanctions.

According to reports by RBC media group, the companies’ concerns stem from the European Union’s 14th package of sanctions against Russia, implemented on June 24, 2024. These sanctions have led to a cessation of key material supplies from the United States, Europe, Japan, and more recently, China.

The shortages primarily affect raw materials used in the production of refrigerators, automotive parts, pipes, assembly foams, sealants, and flooring. The letter highlighted that Russia's economy is now entirely dependent on imports for these essential materials.

The companies further noted that their current stock of raw materials would last only two months. Efforts to secure alternative supplies through sanctions circumvention, particularly with Saudi Arabia, have so far been unsuccessful.

Meanwhile, the United States announced it is adding 123 entities to its export control list, known as the "Entity List," including 63 in Russia and 42 in China.

Being added to the Entity List requires U.S. suppliers to obtain a difficult-to-acquire license before shipping materials and products to the targeted companies. Washington frequently uses this tool to target suppliers supporting Russia’s war effort in Ukraine and Chinese technology companies aiding Beijing's military.

[Information sourced from www.rbc.ru]