US, EU sanctions impact Russian people

Faced with economic sanctions from the West, the lives of Russians are beginning to change, with many feeling the effects of slowing economic growth.

Russians are gradually giving up the habit of buying expensive goods and switching to shopping at cheap grocery stores.

Alexander Salim, a Russian citizen living in St Petersburg, Russia, said the ruble’s 30% fall in value against the dollar has made his hobbies of traveling abroad and buying high-tech phones or branded goods more expensive. In particular, his food bill has increased by 25% since spring this year.

According to Mr. Salim, Russian people are gradually giving up the habit of buying expensive goods and switching to shopping at cheap grocery stores, in the context of sanctions against the "Land of White Birch" expected to last for many months to come.

In a poll published this week, 61% of respondents said they saw a future of declining living standards and a possible economic crisis in Russia. However, in another poll conducted last month, 73% of Russians still supported President Vladimir Putin’s import bans on the US and EU, despite the bans “upsetting” at least 90% of consumers.

Russia's annual inflation rate exceeded 8 percent in October 2014, with food prices rising by 11.5 percent, the Federal Statistics Service (FSS) said. However, prices for meat and poultry, milk and dairy products rose at a faster pace of 18.2 percent and 15 percent, respectively. Still, Muscovites remain optimistic. "Everything is fine," said Artur Trofimov, who lives in eastern Russia. With his income rising, Artur Trofimov is not too concerned about rising consumer prices.

From another perspective, sanctions and retaliation between Russia and the US/EU are bringing a "new wind" to Russia's low-cost car company Lada, as its sales in October increased by 1% compared to the same period last year.

According to news