Feb 23 • 05:44 UTC 🇪🇪 Estonia Postimees

Restaurants and cafes are closing down one after another in Russia

As the war in Ukraine continues, Russia sees a rapid decline in restaurant and cafe closures, indicating a significant economic slowdown.

The ongoing war in Ukraine has had severe economic repercussions for Russia, resulting in a swift closure of restaurants and cafes across the country. This trend is reported to be the most drastic since the conflict began four years ago, with consumer spending plummeting even in affluent cities like Moscow. A recent example highlighted by Reuters is BonCafe in Moscow, where business owner Jekaterina Oreškina bemoans the downfall of her chain as economic pressures mount, including a 50% increase in ingredient costs and exorbitant rents.

The closures span a geographical range from the bustling streets of Moscow to Vladivostok on the Pacific coast, nearly 6,500 kilometers away. The restaurant industry, often a microcosm of broader economic conditions, reflects a significant downturn in consumer confidence and spending amid ongoing sanctions and heightened living costs. As business owners like Oreškina struggle to cope with rising overheads and diminishing sales, the ramifications of these closures are likely to ripple through the economy, potentially exacerbating the existing crisis.

Experts suggest that the closures are symptomatic of a larger economic crisis facing Russia, once touted for its resilience against Western sanctions. The implications extend beyond just the food service sector, raising concerns about job losses, urban decay in once-vibrant neighborhoods, and a looming humanitarian crisis as the economic situation deteriorates further. This alarming trend may influence public sentiment and political stability, as the population grapples with the deteriorating quality of life in the wake of ongoing turmoil.

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