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- [Narrator] Empty shelves at supermarkets,
the rationing of staples and shuttered stores.
After more than a month of fighting in Ukraine,
ordinary Russians have fewer options when they go shopping.
More than 600 foreign brands have announced their withdrawal
from Russia according to Yale University.
Some sided concerns about the conflict and the safety
of staff while others left as a U.S. and its allies
unleashed a raft of sanctions that could complicate
business operations in the country.
- Russia has been decoupled from the global economy
and all these goods and services that came into Russia
over the past years
and made Russia part of the modern world.
So the ripple effects of this are going to be massive.
- [Narrator] So here's how people in Russia
are dealing with the economic fallout and the glimpse
it offers into public sentiment about the war
across the border.
In the 1990s, as the former Soviet Union began
disintegrating, foreign brands started setting up shop
and many were immediately popular.
Fast forward about 30 years and with the war
across the border, hundreds of these companies
are temporarily curtailing operations
or pulling out entirely from Russia.
That's partly because running a business
under Western sanctions is getting difficult.
For instance, several Russian banks have been delisted
from the global financial messaging system
and that can make it trickier to carry out basic tasks
like importing supplies or paying employees.
Many of these brands are beloved by Russians.
On the day, IKEA announced that it was shutting
its 17 stores, there were long lines of people waiting
to do their last minute shopping.
The Swedish company's pullback has also meant that jobs
are in limbo, even though it said it would support
15,000 employees in the immediate future.
(man speaking foreign language)
- So far, most of the companies that are pulling out
have said that they will continue paying their employees.
It's not quite clear how long they'll be able to last,
so it's still sort of a wait and see approach.
- [Narrator] Not all foreign companies have chosen to leave.
Some are playing a balancing act
by staying put and scaling back.
For instance, McDonald's said it's suspended
direct operations in Russia but the outlets
owned by local franchises have remained open.
And Pepsi said, it's halting sales of its big soda brands
but will continue to sell other products
like the milk and baby food.
The corporate pullback is one of many pressure points
on Russia's economy.
A few days before Putin launched the war,
western nations dropped hard hitting sanctions
on the country.
And as a Rubble plunged, Russians lined up at ATMs
to take out cash.
This was also compounded by inflation
which has been persistently on the rise
during the coronavirus pandemic.
And now the war has made the purchasing power
of ordinary Russians even weaker.
So some started stocking up which has prompted supermarkets
to restrict the sale of some products.
Putin has vowed to carry out a raft of measures to offset
the pain of sanctions on Russians
and the government reassured the public
that there will be no shortage of food or daily necessities.
But as Western sanctions shake the Russian economy
and foreign companies continue to scale back,
domestic support for Moscow and the war isn't waning.
- That even among people that are against the war,
there's been sort of a blow back of thinking
how are these actual penalties,
how are Western companies leaving really helping fix
the situation?
- [Narrator] And this anti-west sentiment is already strong
in large swaths of the country.
For example, in one town more than 150 miles away
from Moscow, protestors drove cars marked with the letter Z
which has become a Russian pro-war symbol.
- Most of rural Russian and provincial Russia,
they rely on Russian produced goods anyways
and this is the majority of Vladimir Putin's support.
- [Narrator] And Putin's popularity has increased
after Russia launched its war in Ukraine.
He had an 83% approval rating according
to the independent Russian pollster Lavada Center.
So with no immediate end to the war in sight,
ordinary Russians may deal with deeper economic pain
as sanctions mount and more companies choose to leave.
(soft upbeat music)