Kremlin Prepares Secret Report On Russia's Deep Regress

There won't be enough food, fuel and SIM cards.

Russia faces economic disaster in the future as a result of sanctions' impact.

While the Russian authorities are saying that a successful "import substitution" is taking place in the aggressor state, this is not actually the case.

That's what Bloomberg says, citing a secret Kremlin report.

Bloomberg claims to have gained access to a secret report drafted for the Kremlin by officials and experts on the impact of international sanctions on Russia caused by the war against Ukraine. Persons who have seen the report have confirmed to journalists that it is real.

Two of the three scenarios in the report show that Russia's recession will accelerate next year and that the economy will not return to prewar levels until the end of the decade or later. In all scenarios, sanctions pressures intensify and more countries may join in. Europe's abrupt rejection of Russian oil and gas could also lead to a shortage of energy even for Russian citizens.

The report estimates that some 200,000 IT professionals could leave the country by 2025, an indication of the "brain drain" from the aggressor state.

According to the report, a complete cut-off of gas supplies to Europe could cost Russia up to 400 billion rubles ($6.6 billion) a year in lost tax revenues. The loss of sales to new export markets will not be fully compensated even in the medium term.

Europe's plans to stop importing Russian petroleum products could provoke a sharp drop in production, causing the domestic market to face fuel shortages as well.

Metal producers are losing $5.7 billion a year from the restrictions. Even in the agricultural sector, where the Kremlin is trying to substitute foreign supplies, dependence on key factors of production may force Russians to reduce food consumption, the report says. The country's lack of Western technology will set Russia back by a generation.

Then the economy of the occupying state will face the following problems:

Agriculture. 99% of poultry production and 30% of Holstein dairy cattle production depend on imports. Seeds for staples such as sugar beet and potatoes are also largely imported, so are fish feed and amino acids.

Aviation: 95% of passenger traffic is carried by foreign-built aircraft, and the lack of access to imported spare parts may lead to a reduction in the aircraft fleet as they go out of service.

Machinery: Only 30% of machine tools are Russian-made, and local industry is unable to meet the growing demand.

Pharmaceuticals: Some 80% of domestic production depends on imported raw materials

Transport: EU restrictions have tripled road transportation costs.

Communications and IT: Restrictions on SIM cards could leave Russia without enough of them by 2025, and its telecom sector could lag five years behind the world leaders by 2022.