Technology Sanctions will Cripple Russia because Russia is not self enough, and many contemporary technology is dependent on extra parts, technical support, and in many cases, connections with external support systems through the Web.
Technology aside, payments in foreign currency for ongoing trade with Russia will be tough due to the financial sanctions on Russian funds and russian banks held overseas. The ability to spend for anything with Rubles or to transform Rubles into foreign currency will likewise be tough due to the collapse of the Ruble resulting from other sanctions.
Innovation sanctions will cripple Russia in the very same method that other trade and financial sanctions have worked:
Many business that ran in Russia have either closed their workplaces throughout Russia
Numerous international companies that could possibly averted government-ordered sanctions have complied anyway by ending all manufacturing, export, import and financial investment in Russia
Luxury microchips are no longer being provided to Russia.
Much of Russias factories and heavy market, including the petroleum industries, rely on spare parts and technical assistance to continue to have the ability to maintain and operate them, and these parts and upkeep is being cut off as part of sanctions and associated worldwide boycotts.
Cellular service in Russia depends on hardware imported from European nations that have cut off Russia,
and the Chinese companies that make Russia would need to use to replace that equipment use chips and chips that
Many Internet-based services have closed or suspended Russian accounts.
Technology sanctions are more painful than sanctions versus other sanctions against exports to Russia:
The worlds biggest sea freight providers, including Maersk, CMA CGM, and MSC instantly ended all delivering to and from Russia, and a lot of others, including big Singapore provider Ocean Network Express and Germanys Hapag Lloyd followed match. This damages the economics of import and export to and from Russia for products that rely on containerized freight. Russian aircraft are not allowed in EU airspace, which blocks much Russian air freight and other Russian civil air travel into and out of Russia or makes it take really ineffective paths.
Wiring money into our out of Russia is also likewise blocked for most deals as part of the monetary sanctions against Russia.
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About half the aircraft in Russia are rented to Russia by foreign companies, and the sanctions are expected to result in default that will require return of these aircraft. Even if Russia was able to preserve their aircraft without parts and support, they will be not able to offer tickets for global travel and about half of their airplane have their leases end.
Russia has also been locked out of the airline ticketing systems that serve virtually all airlines, which means that global traveler flight to and from Russia has been cut off, consisting of for Russias flagship airline, Aeroflot.
https://www.youtube.com/watch?v=SV_4M9R8Ggs.
Achnowledgements:.
Video produced by Techalter.
Credit – Music by Edemski.
The ripple impacts will reach both cities and rural locations of Russia.
INTERNATIONAL AIR AND SEA FREIGHT TO AND FROM RUSSIA IS ENDING
The worlds biggest sea freight carriers, consisting of Maersk, CMA CGM, and MSC instantly terminated all delivering to and from Russia, and most others, including big Singapore provider Ocean Network Express and Germanys Hapag Lloyd followed match. Russian aircraft are not allowed in EU airspace, which obstructs much Russian air freight and other Russian civil aviation into and out of Russia or makes it take really inefficient paths.
RUSSIAN CIVIL AVIATION IS ENDING
Perhaps the extensively utilized technology that requires the most regular assistance with extra parts and trained professionals is airplane. Russia depends heavily on aircraft made by Boeing and Airbus for civil aviation, both for domestic air cargo and passenger transportation. Both Boeing and Airbus shut down all service and upkeep operations, and terminated all sales, products, and extra parts shipments to Russia. Without frequent set up maintenance and spare parts, Boeing and Airbus airplane situated in Russia will no longer be accredited as airworthy and will soon be either unsafe to fly or will in fact be unflyable. Without certified airworthiness Technology companies, along with many others, depend on civil aviation for transferring key workers and critically urgent domestic deliveries. This will eventually lower Russian civil transport to counting on trucks, trains and vehicles, setting civilian transportation back a minimum of 80 years.
Low-tech items and supplies do not require much assistance, however they still need spare parts if something breaks
Like other contemporary nations, Russia uses Western computer systems and software application throughout all areas of their economy
As all of us know, software is supported with regular updates, and premium software application is delivered to registered consumers,
and this makes it reasonably easy to cut off updates to Russian customers
Hardware breaks down occasionally and contemporary hardware is usually composed of wave-soldered circuit boards that are tough to fix without extremely extra parts and experienced service technicians, consisting of computer system chips that likewise require to be imported.
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Technology sharing between nations has actually driven lots of advances in both pure science in addition to in business and commercial applications, and the interruption in these worldwide collaborations is not only disruption operate in development, however even after these sanctions are raised, it will take considerable time to re-establish trust and working relationships, and begin such cooperative efforts again.
RIPPLE EFFECTS OF SANCTIONS AND INTERNATIONAL BOYCOTTS
About 3 million individuals in Russia work for worldwide business that have ended trade with and/or operations in Russia, from airplane, cars and truck, computer system, cellular phone, and truck business to style, soft beverage, and quick food business. Not just will this be disruptive to individuals of Russia, however to the Russian business that purchase from or supply them, and all individuals who work for those Russian business that will lose these global business as suppliers or consumers. The ripple effects will reach both cities and backwoods of Russia.
Technology Sanctions Cripple Russia with a Long Term Brain Drain
Combined, all the above sanctions will have a crippling impact on Russia, however just as important, she will suffer a brain drain of her researchers, service technicians, and other talented individuals recognizing that they have abilities that can get them work in the West, and that the sanctions have made life agonizing enough that they are better off leaving Russia for better chances. The loss of a generation or more of its most skilled individuals may create more long term damage than the sanctions themselves.
Other associated parts and important items and assistance will no longer be offered to Russia, consisting of all the major makers of trucks, vehicles, computer systems, and even cellular phone. Two of the major Internet foundation providers cut off service to Russia, citing concern about Denial of Service attacks originating from Russia, but which will impair Internet service in and out of Russia, specifically anything requiring high volume communication or low latency/fast response times.
PAYMENT TECHNOLOGY IS ALSO BEING CRIPPLED FOR RUSSIA
American Express, Visa, Mastercard, PayPal, GooglePay, ApplePay, and associated payment systems like Venmo have actually cut off China from their settlement systems. This suggests that if you are outside Russia, you can not use these systems to pay a business or person in Russia, and if you are inside Russia, you can not use these systems to make a payment to a company or individual outside Russia. Wiring cash into our out of Russia is likewise blocked for many deals as part of the financial sanctions versus Russia.
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Weaponizing the global economy on this scale will lead to either the total collapse of the Russian economy for generations, or stronger economic ties between Russia and China that will begin to threaten the Western economies, to the point that they can flip the script and push punishing sanctions on other nations. This is a very risky strategy, and we’ll have to deal with the consequences of this one conflict for generations – regardless of what those turn out to be
If China will take this route the production will return to the western countries and everyone wins except the dictatorships.
China doesnt win as much from Russia as it does with Europe and USA in terms of trade volume
If Russia takes the China route, they better start practicing bowing to their Chinese masters.
Great video to see the potential cumulative impact all put together. I was watching an interview with a Russian economist who said these sanctions would potentially be a great opportunity for Russia to create its own domestic industry. This video proves that that notion is a fools errand.
I’ve seen people bring up Rhodesia as an example of how a country can survive sanctions. Well, sure it’s possible, but not if you want to remain a first world power. Also the Rhodesian economy was still able to trade with South Africa, they didn’t have pretensions of being a superpower, and of course the 1970s weren’t anything like the night tech economy we have now.
As you say, they can’t possibly pivot quickly enough. There is just waaaay too much ground to make up and, as you say, the economy is global.
I fear this will all end very badly.
how bout Vietnam? We literally dont have any supporters other than Soviet at that point. Also Russia alr made up, read the news.
I’m from Denmark. I don’t think anyone really expected the sanctions to be this hard. I don’t think even the politicians that make these decisions expected sanctions to snowball like this.
I also don’t think anyone expected the Ukrainians to be this resistant to the russian military.
I don’t think anyone really expected Putin to go further than Luhansk and Donetsk… I feared it, but I honestly thought Putin was content with grabing pieces of Ukraine and not all of Ukraine.
@Anonymous ™ did western news cover like the US pathetic attempt to ask other country for oil and also EU struggle freaking lot without wheat and oil from Russia?
@Khiêm Nguyễn We already know those prices are high now. And the nord stream closed too.
Point is that Russian news DON’T show bombs on hospital and school, those are not military targets! Russian military’s excuse is that Ukraine soldiers are inside the building, and in the rule book says that YOU do not bomb the place. !
@Khiêm Nguyễn And I don’t know where you’re from. Joe Biden said aswell that Putin’s power shoud be removed. But here’s funny answer from Kreml: The people of Russia decide who need to be on president post. – Like I said, Russian news cover all these horrible situation of Ukraine.
@Anonymous ™ not very horrible, war is horrible but not as what the US did. Literally see other country media plz, like u guys all think russia is losing but i dont see any sign of that
It’s sobering how extensive these sanctions are. Good news for us, hopefully it will alleviate some of the supply chain issues. Been needing a new GPU for a while now.
It reminds me of the Cold War when 16 bits computers were banned from export to the USSR. They could only use 8 bit tech.
I think the big point is that since there’s so many different sanctions, almost every solution a company could turn to to deal with sections is blocked by a different sanction.
@Musiccer the comment i was referring to was deleted… or received a crapton of downvotes… so you are missing the context…
@Cyan _ yes they beat the Wehrmacht… with tanks that have since rusted away into dust, and the current military hardware of the Russians, that we in the West can see, are all rusting, rotting, and breaking down on the roads.
Their military is full of old and expensive machinery that is repeatedly being stolen by farmers with tractors, and they’re finding armor plates on their tanks that were filled with cardboard and not, you know, armor to protect them from antitank rounds. It’s an indictment that so many troops have already surrendered and defected.
It’s a fact that most of Russia has been under the sway of oligarchs, and these rich men have essentially bled Russia dry through corruption and funneling money out of government ran companies. This
@Heidenspross The Russian people then were fighting invaders, and fighting for survival against an enemy committing war crimes against Russian civilians.
Now the Russian army is the invader, and are the ones committing war crimes against civilians.
The young people understand this and see through the government propaganda. The military conscripts see through it.
It’s entirely different than wwii.
@Ian Smith Actually, the Oligarch problem in Russia has been drastically reduced under Putin’s reign. The country formally known as Ukraine was the one still firmly under the thumb of Oligarchs. And what does Russia care if some farmer took towed away a tank? They can easily go back and round them up in another month or two. Have you ever read the problems the Wehrmacht had i with mechanical failures and breakdowns n the invasion of Czechoslovakia- which was almost completely unopposed? This is what happens in war.
This deep interconnection was one of the main reasons I thought nobody was stupid enough to invade another country like this. The economic impact is insane, and the actual result unpredictable. Even if you look at it ignoring humanitarian values there is just nothing to gain. It’s absolutely illogical.
@Alonso Echev Well, if we talk about LGBT freaks and Western ones where there are 54 genders) Or Russian oligarchs who are used to living in Europe, then yes, they are not stock. But 95% of the population of Russia are still the same people, we have preserved our traditions, our religion, both Orthodox Christians and Muslims. Great The Patriotic War is very significant in our worldview. Victory Day is still the most important holiday. Business partners in any case, many 1 billion Western is not all of humanity there are other 6.5 billion people who will trade) China India Latin America Africa Atab country And the lack of technology, we perceive this as a challenge, once agricultural Russia made a leap in 10 years and was the first in space. We have enough brains and scientists.
Look up China and its MASSIVE TRADE with North Korea. These sanctions will do NOTHING, except push Russia and China closer together, AND enrich China more.
Likely will see yuan as the new world reserve currency in the next decade.
The sanctions wont work
Look up Napoleans “continental plan,” of how easy sanctions can backfire
They can just use Russian-made microchips. The Smirnoff Core 2 Vodka and such
@Ozymandias then why in the US, the oil price is skyrocketing?
@Alonso Echev Russia and China are still trading with eachother lol. China will now be their middle man and funnel western products through their country into russia, and in return Russia will protect China militarily once it decides to invade Taiwan and other SE Asian countries
These consequences are also one of the reasons the EU was founded. When your economy is dependent on the countries around you, then you have a very strong incentive to not invade them.
Putin didnt Care about that thou
@Fredrik Svärd Yore living in a fantasy. Russia would be isolated from the rest of the world in every possible way for so many many years to come, it would not only put them back in the Soviet era, but back to the fucking stone age , if they dropped even the smallest nuke. The want dare!
@Ludo Ludowski See you’re lost in the left vs. right mentality. Letting it get into any conversation. Im not talking about politics Im talking about things you dismissed earlier. And you changed the topic to this. Its not hard to just come back to reality and have normal conversations dude. Last note: I think it’s funny that you claim its the right with racist ideology, at the very least admit it’s both sides
@Fredrik Svärd lol are you for real? Stop pretending Russia is some blundering buffoon of a nation. They were a key player during the entire cold war and have about 80 years of knowledge of what would happen if they used nukes in a war. It won’t happen and you’re just fear mongering
No. The EU was supposed to be only a free-trade zone for members. The political interference continues to erode that.
This whole situation seems to have citizen outrage as a major driver of these sanctions, especially when it comes to companies electively stopping exports for PR reasons. Never underestimate the power your voice has.
@Tmb1112 We are talking about collective outrage. Why can’t we be outraged about something in our own country?
i@vshah1010 In the Roman Empire and in medieval Europe, armies would burn the crops of the enemy so that the King would lose his financial base, i.e. the food the peasants grew. Of course while the King became too poor to pay soldiers, the peasants starved to death. This is not a new tactic and Russians probably won’t starve, but disruption of fertilizer from Russia and grains from Russia and Ukraine might cause starvation in developing world countries.
But don’t feel very sorry for Russians. They knew Putin was becoming a dictator and most didn’t care as long as the chaos of the ’90s didn’t return.
It’s not wholly consumer led, I don’t think anyone not in Europe realises the sheer dread of a Third World War. We have been there don’t that twice and will do almost anything not to go through it again.
I live in a city that Hitler caused 30% of the housing stock to be obliterated in 2 nights, it’s only really over the last few years that the “temporary” housing put up immediately post war, has finally stopped being used. We can’t go through that again, hence the European unity even post Brexit.
@vshah1010 the US cannot not afford to support Ukraine, if everyone doesn’t stop Putin now then he will go on to take over many other countries on its borders causing a worldwide economic collapse that will devastate the US economy as well as everyone else. It’s not a case of choosing whether or not to support Ukraine.
@vshah1010 of course it does, however the solution to that is in their hands.
I work in IT field and let me tell you this, Hardware fails every day every minute somewhere out there.. If there is no constant spare part supply, it will decay and will become very limited to function.
@J.J P There is no such thing as sin. And God is not wrathful.
@Mitch Anderson Putting hospitals as a example of wear-resistant hardware is like saying ‘a battle tank is more resistant to small arms fire than sedan, therefore we should not worry about partisans hiding in the woods and shooting passing cars’- Hospitals are designed from scratch to be safe in all but most extreme circumstances with redundant power supply systems, stockpiles of food, medicine, clothing, spare parts, as well as fortified construction.
However, much like the statement, a lot of the electronics on consumer-grade stuff as well as company-grade stuff (such as building and automation electronics, which are massively important in big buildings such as food storages, factories, skyscrapers etc) are very much ‘order to replace’ items where not much redundancy or stockpiles exist due to high cost of redundancy vs expected projection of neccessity.
@J.J P Thx. Hail Satan
They could use Windows 3.1 .
I’d like to add on your point at around 8:00. The Chip blockage is far far far more devistating as you think. I’ve worked as an embedded software dev for 20 years and those chips usage goes far beyond than most people think here are just some I’ve worked on. Chips in gasstations, sewages, waterplants, oilplants, food production etc etc etc. Everything which is somewhat automated/remote controlled with logics in place is royally fucked to put it lightly. It won’t even take 1 year until major consequences are beginning to appear in normal peoples life. Fresh water, gas and food will get wracked sooner or later as everything requires modern chips these days.
I’am really interested in the way the russians are gonna deal with it.
Even us without any trade restrictions had problems the last 3 years due to the semiconductor shortages especially in embedded fields.
sry that my grammar sucks hard, but I really wanted to make clear how depended a modern civilization is from these chips. The most basic infrastracture is dependend on it.
a little edit for further info. The lowest russian semiconductors got around 130~ nm. They’ve claimed to produce 90nm but that one never came to light so most likely a propaganda hoax.
@Isaac Alonzo my high end gpu in the early 2000s had 117 million transistors.
Now a high end phone chip has over a billion. Just crazy!
@The Curious Noob compare that to the ancient tech that was used in the Apollo program
I guess those who have played fallout know the importance of chips then ;P
@Isaac Alonzo haha yeah, good times lol they can say that to our smartphones!
I’m actually shocked by how hard and fast the sanctions hit. I’m guessing Putin is shocked too. He didn’t expect a retaliation on this level, coordinated by so many countries and companies.
It’s unfortunate that average Russian citizens are hurt by this mess, but that’s the way it goes sometimes.
Usually dictator not too smart. All they care is power and doesn’t care about the future.
Shocked? No. Confused? Pretty sure he is. Rumors says he expected “fair and square” military struggle with West (lets put aside actual combat skills of army) with Nuclear weapon as last ditch solution. However, West declined this game and instead started economic war for which nobody was prepared (they expected sanctions, OFC, but not this big). Honestly speaking, looking back now Crimea sanctions wasnt THAT hard (they was real and noticeable, however) if you compare them with new. If expectation was to take hit just like last time they may was reasonable prepared, but not for this new reality.
@SuperCatacata u might be surprised, but we are paying month wage for simple electronics since… forever? Nothing special. The most stupid thing western world did – targeting sanctions against average russian. Putin and russian government itself was nowhere near popular even despite tons of internal propaganda. And what do we have now? Putins ratings just skyrocketed, because russians feel agression form west and wants to unite around the leader against it.
Some ppl just didn’t learn there history lesson. Hitler didn’t appear from nowhere – Germany was a prideful nation, been humiliated by ww1 contributions, so nazi crap hitted sweet spot. Now US and EU creating a nuclear Hitler with there own hands.
I feel like the Russians are also enduring a war called killing them softly. Once their economy collapses they will be jobless, homeless have food shortages then they will start a civil war.
In Russia they had also internet and they could travel to other countries to see how they live there so they could have known if they opened their eyes (that is for the peeps that don’t open their eyes and still listen to putin)
It’s their own fault tbh (not mean i wish them all the bad though but it’s a fact, no one can say otherwise)
I feel more sorry for the kids and older people. The people between the age of 18 and 60 or so, i don’t feel bad. Not good also but they have a choice and that’s where i look at. If they have chosen for live there then it’s their own fault.
There was an ex KGB being interviewed recently and he stated that Putin doesn’t and isn’t worrying about the sanctions or “special economic operations”, the oligarchs, or the people. He said he is or may be worried about the security staff around him.
Putin may soon find out that the retirement program for dictators isn’t all it’s cracked up to be. Hard to spend all those ill-gotten billions when your dead.
@Artem Bentsionov I’d like Louisiana back please. And not the state, the entire historical thing. My grandpa heard from the wife of a cousin of a friend at a bar a couple years back that it was just a loan. It’s all the proof I need x)
@K. V. well then I must be true!
@Artem Bentsionov Haha yup. And hundreds of thousands of armed Alaskans and military members who will see it differently. Oh and the rest of everyone just a little to the south. Good luck with that, Russia 👍🏻
@Matt W and of course Putin will claim that Russia was attacked first. That’s been their MO for a while
This was the most enlightening 17:23 I have spent in the last 2 yrs, thanks for showing a bigger picture of what most media just gloss over
Great video. many people can’t understand how disastrous the sanctions are, I personally survived them in the former Yugoslavia which were six times weaker than those in Russia, it’s unseen hopelessness, you don’t know what to do to feed your family, everything stops and you think never again you will not live normally.
@Aleksa Žunjić we don’t need Russia for our basic needs we don’t use a lot of Russian anything sorry dude. They mainly supply third world hell scapes. We literally can survive on our own just fine. We did it during the Cold War and broke China and Russia. We will do it again and their economies will collapse and come begging the white man for rice and bread again. The typical easternoid nonesense.
@Harry Randhawa no it can’t hahaha I literally visited Russia before this and it’s a shithole.
Its unfortunate that the people are affected so heavily
@Marc Kier only time will tell. But most importantly i hope in any scenarios no one of regular people will forget that we all are just human beings and should treat each other as such.
@The Love Bug Cuba is also poorer.It’s easy to live when the only thing you worry about is getting food
This is the one of the best summaries I seen to date on the impact of the sanctions on Russia. Very good!
It wasn’t until I saw this video that I began to realise the sheer scope of these sanctions. Excellent work
@Thetequilashooter1 of course the west media won’t show the proof Russia DID show to the world, if you haven’t see is because you don’t to see it, even with all the censorship you can still find it.
@Red Pill Russia hasn’t shown anything. If it had actual proof, it would have presented it before the UN. Russia lies, lies, lies. Just like the beginning of this war. It said its soldiers were there for training purposes only. It then said it was sending some home to deescalate the situation. When the US said that there no satellite evidence of Russia’s pulling out troops, Russia accused the US of lying, yet it didn’t take much linger for Russia to attack Ukraine. Face it, Russia can’t be trusted. It agreed in wriiin the Budapest Memorandum to not attack Ukraine in exchange for Ukraine providing Russia with it nukes. Ukraine upheld its end, but Russia did what Russia does, breaks its promise.
@Thetequilashooter1 looks like most of the brainwashed people will always be brainwashed, thanks God I got out of there, western brainwashing corporate media sure doing their job good. 😔
@Red Pill You’re the one who’s brainwashed. I get my news from all over. The fact that Russia shut down the internet, Facebook, Instagram, and can jail people if they openly talk with opposing views to the government, all just proves that Russia doesn’t want its people to know what’s really happening in Ukraine. What is really pathetic are trolls like you who have no morals and spread Russia’s lies. You’re no better than the Russian government.
@Red Pill If Russia showed the world of the atrocities, then it should be easy for you to tell me exactly where to go on the www to see them. If Russia did show the world, it wouldn’t have boycotted the hearings before the UN when Ukraine challenged Russia to prove its case. Don’t you have any fuc*ing integrity to be honest, or are you just another one of those Russian trolls who get paid to spread lies? If you love Russia so much, why are you here on US owned YouTube? Take your BS to Russia’s crap version of it called RuTube. At least you won’t find Americans stooping to such low levels by making up lies bashing Russia.
Given the global shortage of computer chips, even if a product is not sanctioned, most companies will prioritize other customers. This will persist even once sanctions are eventually lifted
@Anonnymouse china & india have putins back
@UVWXYZ good point, hopefully youre right
@Epsilon yes. Russia is completely innocent. Just like Russia troops in Georgia. Completely innocent.
@Gary Schultz The US will not let this happen. Just think about that almost all new military equipment needs microchips.
@UVWXYZ What about Russian troops in Georgia? Georgia attacked Ossetia and UN peacekeepers with multiple rocket launchers. You have problems with Russia kicking them back to Georgia? You got nothing you brutal lover of nationalistic regimes. Meanwhile Ukie Nazi snipers kill people who try to leave Mariupol. Small girl was shot by a sniper right in the chest, her mom was shot too. They tried to escape to Russia but didn’t make it to the bus. These nazis you support with all your supremacist heart. You would support Hitler against Russia. Oh you actually did. Entire Europe colloborated against Russia with Hitler back then.
They aren’t sanctions. They’re special economic operations.
touché lol
With globalization war could soon be a thing of the past with such sanctions given to a country that starts when and that would be a good thing
Where are the Nazi’s , not seen one yet.. im sure sheet for brains will find some though
Right haha, and the russians invasion isnt war is it a special military action
Love it!
Note: I kept mispronouncing MAERSK (the shipping company) as Merck (the company making chemicals). I meant to say MAERSK, obviously.
To see the second video about Russian cyber attacks, sign up for the Nebula/Cusiositystream bundle here: https://curiositystream.com/techaltar
Look up China and its MASSIVE TRADE with North Korea. These sanctions will do NOTHING, except push Russia and China closer together, AND enrich China more.
Likely will see yuan as the new world reserve currency in the next decade.
The sanctions wont work
Look up Napoleans “continental plan,” of how easy sanctions can backfire
@Deepak S During evacuation from Kiev. On the train stations Indians was blocking Ukr people from getting on the trains, because all their people needed to go first, without tickets. A story all ways has at lest two sides. this time it was recorded. DO you think it’s justified killing all those civilians just because an Indian student might have been beaten. Then for sure you are a very sick person
When will TechAltar have their Yachts seized and squirelled-away billions seized ⛵ 💵
all good we got it either way