French economist Jacques Sapir once wrote an article about the Russian economy.

I quote him in general below.

A big reason for this miscalculation, according to Sapir, is exchange rates. If you simply convert Russia's GDP from rubles to dollars for comparison, you would indeed see it as an economy as large as Spain's. However, such comparisons are meaningless without adjusting for PURCHASING power parities, which account for productivity and living standards, and thus per capita welfare and resource use. In fact, PPP is the preferred measure of most international institutions, from the IMF to the OECD.

And when you measure Russia's GDP based on purchasing power parity, it's clear that Russia's economy is actually more like Germany's size, Russia's about $4.4 trillion versus Germany's $4.6 trillion. From the size of a small, somewhat sickly European economy to the largest in Europe and one of the largest in the world, this is not a gap to be ignored.

Sapir also encourages us to ask: "What is the share of the services sector compared to the share of the products and industry sector?" In his view, today's services sector is grossly overvalued compared with the industrial sector and commodities such as oil, gas, copper and agricultural commodities. If we reduce the importance of services as a proportion of the global economy, Sapir says, "Russia's economy is much bigger than Germany's, maybe 5 or 6 percent of the world economy," more like Japan than Spain.

This makes intuitive sense. When times are tough, we know it's more valuable to provide people with the things they really need, like food and energy, than with intangible things like entertainment or financial services. When a company like Netflix trades at a price-to-earnings ratio three times higher than Nestle, the world's largest food company, that is more likely a reflection of frothy markets than actual reality. Netflix is a great service company, but as long as some 800 million people in the world are undernourished, Nestle still offers more value.

All of which means that the current Ukrainian crisis helps to clarify our views on what we rightly regard as "archaic" aspects of the modern economy, such as industry and commodities, whose prices have soared this year; And perhaps overvalued services and "technology" whose value has recently collapsed.

The size and importance of the Russian economy is further distorted by ignoring global trade flows, of which Mr Sapir estimates Russia "may account for 15 per cent". For example, while Russia is not the world's largest oil producer, it has been the largest oil exporter, surpassing even Saudi Arabia. The same is true of many other basic products, such as wheat, the world's most important food crop, of which Russia controls about 19.5 per cent of global exports, as well as nickel (20.4 per cent), semi-finished iron (18.8 per cent), platinum (16.6 per cent) and frozen fish (11.2 per cent).

Such an important position in the production of so many basic commodities means that Russia, along with several other countries on earth, is in many ways the linchpin of the globalised production chain. Unlike "maximum sanctions" on countries like Iran or Venezuela, trying to cut Russia off from world markets has meant and will likely continue to bring about a huge restructuring of the global economy.

Much of this has been proved by the war in Ukraine. In fact, by controlling oil, gas, food and other commodities, the war of sanctions waged by the United States and its Allies in the Americas, Europe, and Asia has shifted to the originators and their people.

As long as the military industrial complex is recording record profits. That’s what really matters to the evil globalization cult nato and USA.... Russia is bigger than them all.

They are getting weak. Their economy is contracting and many industries will close down this year due to lack of spares. Thr Rouble is up due to low importation but this is only crashing the economy

You can only hear what Russia and Putin wants you to hear... Trust me the economy is saying slowly , companies have pulled out and Russians who are skilled professionals are running kiti kiti to the west
Mad man Putin can only deceive his fellow Nairaland zombies

Whobedatte:
You can only hear what Russia and Putin wants you to hear... Trust me the economy is saying slowly , companies have pulled out and Russians who are skilled professionals are running kiti kiti to the west
Mad man Putin can only deceive his fellow Nairaland zombies

You can cry Russia is too big for that it is a matter of time Russia restrict most of the important resources to the west let see who wins

Just like China Russia has started promoting home made stuff

They will do better

RiceProducers:
They are getting weak. Their economy is contracting and many industries will close down this year due to lack of spares. Thr Rouble is up due to low importation but this is only crashing the economy

That your wish but it not going to work

ken6488:
You can cry Russia is too big for that it is a matter of time Russia restrict most of the important resources to the west let see who wins

Just like China Russia has started promoting home made stuff

They will do better

Hahaha copycats China ?
Nothing wey you fit tell some of us about copy copy Chinese oo
I know them ,worked with them for years
Ask anybody who worked with these companies in Ilupeju years ago (some of these companies are moribund now)
1. Nicapaco
2.Enpee
3.Metropolitan

Wahum in Ikeja and another one in Ikorodu , can't remember the name now
Chinese are the most useless people on earth , heartless and inhumane , they are racists too
They use us like tissue papers , engage casual staffs for 6 months under a sweat shop , no HMO for staff , no good working conditions , they even sleep with our Nigerian girls right in the factory and abuse them .
These set of weird looking , racist buffons come here and recruit after 6 months so as to casualise staff

Whobedatte:

Hahaha copycats China ?
Nothing wey you fit tell some of us about copy copy Chinese oo
I know them ,worked with them for years
Ask anybody who worked with these companies in Ilupeju years ago (some of these companies are moribund now)
1. Nicapaco
2.Enpee
3.Metropolitan

Wahum in Ikeja and another one in Ikorodu , can't remember the name now
Chinese are the most useless people on earth , heartless and inhumane , they are racists too
They use us like tissue papers , engage casual staffs for 6 months under a sweat shop , no HMO for staff , no good working conditions , they even sleep with our Nigerian girls right in the factory and abuse them .
These set of weird looking , racist buffons come here and recruit after 6 months so as to casualise staff

the irony is that the west used slaves to build their country, looted Africa dry and still looting..

And they are very racist

They are not better than china

At least china is using copy and paste to advance their tech..

China and USA economy are almost equal

China dominate Europe economy


You can keep wailing

ken6488:
the irony is that the west used slaves to build their country, looted Africa dry and still looting..

And they are very racist

They are not better than china

At least china is using copy and paste to advance their tech..

China and USA economy are almost equal

China dominate Europe economy


You can keep wailing

Sharrap dia
What has china given the world or even your Russia? The internet you are using to type the jargons today is a western invention
West gave us democracy at least I can say whatever I want to say without any cause for alarm
Today most of you Insult Buhari and go Scot free , can you dare that in communist china ?
I have worked with Germans (Franz messmer) a Briton (David Williamson ) as head of operations while in the largest printing press in West Africa ,and you dare not compare them with Chinese and Indians .
Chinese go use you for a 12 hour shift and not even give u an off day , after subjecting you to pay as you go . After 6 months , they disengage and engage again .
Don't compare them with the west please !

Whobedatte:

Sharrap dia
What has china given the world or even your Russia? The internet you are using to type the jargons today is a western invention
West gave us democracy at least I can say whatever I want to say without any cause for alarm
Today most of you Insult Buhari and go Scot free , can you dare that in communist china ?
I have worked with Germans (Franz messmer) a Briton (David Williamson ) as head of operations while in the largest printing press in West Africa ,and you dare not compare them with Chinese and Indians .
Chinese go use you for a 12 hour shift and not even give u an off day , after subjecting you to pay as you go . After 6 months , they disengage and engage again .
Don't compare them with the west please !

Communism and capitalism both have advantages and disadvantage alot

China is bad because they don't hide their things

Unlike the west that forms saint but has literally rounined many countries

You say democracy
Like the one the took to
Libya.
Somalia
Iraq.
Seria
Yemen
Or you want more

How many countries has China destroyed with military

You say what have china and Russia done to the world

.do you know most of our devices are assembled in China?

The west always appears to be the good guys because the media hide their bad side


China
Russia
USA.
Etc

All have bad and good sides

THEY HIDE THEIR WEAKNESS SO DIP,IS PART OF WAR STRATEGY TILL IT BURST OPEN.

RiceProducers:
They are getting weak. Their economy is contracting and many industries will close down this year due to lack of spares. Thr Rouble is up due to low importation but this is only crashing the economy

Only brain dead putards believe Russia economy have grown

ken6488:
the irony is that the west used slaves to build their country, looted Africa dry and still looting..

And they are very racist

They are not better than china

At least china is using copy and paste to advance their tech..

China and USA economy are almost equal

China dominate Europe economy


You can keep wailing

Do u know that china was ones a super power?

If you have oil and great food then your nation will be able to stand strong.

Russia has both so all you haters can wish them bad but it won't affect them.

Oil moves the world and they have it.

Nature hates vacuum those companies that left home grown ones will climb up and replace them.

Akuruoulo:



Do u know that china was ones a super power?

China empire

ken6488:
the irony is that the west used slaves to build their country, looted Africa dry and still looting..

And they are very racist

They are not better than china

At least china is using copy and paste to advance their tech..

China and USA economy are almost equal

China dominate Europe economy


You can keep wailing

slaves that are part of the country ? Are you playing or just being paranoid ?

The fact is that Russia's economy is crashing by a whole hell...The same way you think the US publish propaganda that's how Russia does to.They want you to think what they want not the fact...The reality is that Russia is crashing both economically and militarily and our next target is China.

Russia IS getting weak according to sanctions. They are selling their oil cheap and asking for military aid from 3rd world countries.
You don't have to tell lies to yourself.