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As Russia approaches its annual New Year celebrations, a once-joyous occasion now seems more like a grim countdown to the country falling off an economic precipice.

With warning lights flashing, ordinary Russians are tightening their belts amid galloping inflation and a plunging ruble while the Kremlin raises the possibility of introducing food cards for the poor. All the while, the Central Bank is scrambling to stabilize the economy through interest rate hikes and foreign currency interventions.

Moscow Mayor Sergei Sobyanin has already confirmed that fireworks will be canceled again this year due to the ongoing war with Ukraine. Meanwhile, old friends of mine in Moscow are beginning to panic about affording the traditional New Year’s Eve feast, as inflation and a weakened ruble threaten to shrink the usual abundant spread of fine food and booze.

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This year, as inflation takes its toll, the cost of Olivier [Olivier salad is described as are the centerpiece of any Russian holiday spread] has soared. Key ingredients like chicken and mayonnaise have risen by over 30%, while potatoes have spiked by a staggering 65%. According to RIA Novosti, citing Rosstat data, four servings of this holiday staple will now cost 553 rubles — an 8.5% jump in the Olivier Index.

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Many Russian bankers and industrialists now worry that the economy could be heading into a tailspin like 2008, when a credit crisis led to waves of bankruptcies.

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Surging borrowing costs are now pushing many companies into a debt spiral, with interest payments eating up one in every four rubles they earn.

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Ralf Ringer, Russia’s largest shoe manufacturer, which was declared bankrupt on Dec. 7 after its accounts were blocked due to debts and fines of 1.5 billion rubles.

Real estate developer Samolet is now slashing jobs amid a slump in new apartment sales. By the end of 2024, around 2,000 employees are expected to be laid off, following 5,000 job cuts earlier this year, according to a Lifenews report on Dec. 8.

Even Kremlin loyalists like Sberbank CEO Herman Gref are publicly admitting that the economy is tanking.

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