Russian economy struggles with soaring interest rates, layoffs

Russia's economy is facing severe challenges as interest rates soar to 21%, leading to increased mortgage costs and widespread layoffs. Major companies, including VK and Gazprom, are cutting jobs, with some firms planning to reduce staff by up to 50%. Recent data shows a decline in industrial output, with the manufacturing index dropping significantly. Medium-sized businesses are particularly affected by high debt and cash-flow issues, resulting in further workforce reductions. The ongoing war in Ukraine is exacerbating the economic crisis, with over 200,000 soldiers reported dead or wounded. This situation is contributing to stagnating wages and a bleak outlook for many sectors, especially for white-collar workers.