What are today’s Russian papers saying about Russia’s economic problems?

(MOSCOW) – Russia’s economy is showing deepening signs of strain as a confluence of significant challenges threatens domestic stability.

The nation’s business daily RBK reported on Tuesday that one third of all domestic enterprises were loss making during the first six months of the year. This financial distress is compounded by a severe labour shortage, with the influx of new workers under the age of 30 down by almost a third.

Further evidence of economic cooling was seen in the automotive sector. The government newspaper Rossiyskaya Gazeta reported that car sales in August fell for the first time in half a year, declining by 6.5 per cent year on year.

Meanwhile, the cost of living continues to soar. The newspaper Kommersant noted that the price of vegetables that make up the traditional ‘borsch set’ has surged by between 20 and 38 per cent over the past year. The publication also highlighted instability in the financial sector, noting that one in four lending institutions in Russia is now loss making.

While reporting on domestic woes, Kommersant also projected economic problems for Europe, stating the continent is approaching winter with record low levels of gas. It argued that expensive fuel is already slowing the economies of some countries.

This narrative appears designed to align with the Kremlin’s geopolitical outlook. The report suggests that the Russian dictator Vladimir Putin, observing gas storage problems in Europe and the electoral success of the far-right Alternative for Germany party in Saxony-Anhalt, may believe that playing a longer game could shift the geopolitical situation in Russia’s favour.

Amidst the economic gloom, efforts to shape public perception at home continue. The newspaper Izvestia reported that the ‘Conversations about Important Matters’ lesson is now being taught in a new format in Russian schools and colleges. Students in grades 6 to 11 will be shown 83 short films about “heroes” that have influenced Russia’s development. According to the education minister, these include films about the “heroes of the special military operation,” which is the Kremlin’s term for its illegal war in Ukraine, as well as the Great Patriotic War and poets.