Let’s talk about the “death spiral” in Russia right now.

By Maria Mbeesley (@mariambeesley1950.bsky.social)
Published:

russian death spiral is not the fun kind where you spin around and fall over, its the one where the country eats itself alive and the only thing growing is the list of shit that doesnt work. no gas at the pump, grain rotting in the fields, wildberries dead in a ditch. circus tent finally caught fire and the clowns are still inside arguing about who forgot the fire extinguisher.

stability is just a word on tv

twenty years of “stability” and now the only thing stable is the unemployment line. official joblessness is up in moscow and the big regions, which is like hearing the titanic’s ballroom is getting a little damp. state tv economists call it “normalization” and “cooling,” which is what you say when you cant afford to heat your apartment and your boss just told you to “normalize” your expectations.

layoffs are a taboo subject, especially in those one-factory towns where if the plant closes, the only thing left is the bus ticket out. if theyre firing people there, it means the company cant even afford to pay folks to stand around and look busy anymore. thats not a slowdown, thats a flatline.

the regime’s answer is to pretend its all fine, blame “external factors,” and hope nobody notices the smoke pouring out of the economy’s engine block. the only thing more diluted than russian gasoline right now is the official explanation for why everything is falling apart.

gas station with no gas

russia, the self-proclaimed gas station of the world, cant keep its own pumps running. refineries are getting hit, supply chain’s a mess, and the solution is to “stretch” the fuel with whatever’s handy. bodjazhit, russian for “cutting your vodka with windshield wiper fluid,” but for gasoline. the stuff coming out of the pumps is so watered down your engine’s gonna need therapy.

this isnt a blip, its the new normal. “temporary difficulties,” they say, while the lines at the gas stations look like a black friday sale for misery. no gas, no go, and the only thing moving fast is the blame.

meanwhile, every time ukraine takes out another refinery, the fuel crisis gets worse. the regime’s answer is always the same: more spin, more denial, more magical thinking.

breadbasket full of mold

russia loves to brag about being the breadbasket of the world, but right now the only thing theyre growing is mold. grain’s rotting in the fields because there’s no fuel to get it to market, no logistics to move it, and no buyers who want to risk sanctions roulette. farmers are watching their harvest turn into compost while the regime tells them to “hold tight” and “think of the motherland.” yeah, im sure that’ll pay the bills.

the only thing more rotten than the grain is the official spin: “we’re just storing it for later.” sure, and im just aging this milk on the counter for the flavor. the war was supposed to be something that happened “over there,” but now its burning down warehouses in moscow’s backyard and turning the country’s biggest companies into cautionary tales.

wildberries: from pride to punchline

wildberries, russia’s answer to amazon, was the pride of the “platform economy” - the one place you could buy a knockoff iphone, a tracksuit, and a book about how great putin is, all in one cart. then the war came home. ukrainian drones started hitting the warehouses, and suddenly “next day delivery” turned into “maybe never, comrade.”

the biggest warehouse in elektrostal burned to the ground, then another in krasnodar, then another. by mid-august, direct infrastructure losses were already at 147 billion rubles, and that was before the kalédino warehouse got turned into a bonfire. add in the cost of cleaning up, and you’re pushing 278 billion. sellers’ goods that went up in smoke? another half a trillion rubles, easy.

putin mumbled something about “restoring logistics” and “building back better,” but didnt even mention wildberries by name. that’s how you know its bad - when the guy who takes credit for every new playground suddenly forgets the name of his biggest online retailer. wildberries is technically still online, still delivering orders, even launched their own messenger app (because what russia really needs is another way to not get paid). but the company’s a zombie - shuffling around, eating whatever’s left, waiting for someone to put it out of its misery.

dominoes and debt

the collapse of wildberries isnt just about one company. its a domino. the whole “marketplace” model in russia was already a racket - sellers were handing over most of their profits in commissions, logistics was a nightmare, and now with the big warehouses gone, everyone’s supposed to switch to tiny local depots. that means higher costs, slower delivery, and more headaches for everyone.

some economists say the psychological impact is bigger than the economic one, but tell that to the guy who just watched his inventory go up in flames. september’s supposed to be when the real pain hits - defaults, bankruptcies, the works.

meanwhile, the banks are sweating bullets. wildberries owed a lot of people a lot of money, and now those debts are looking shakier than a lada on a dirt road.

logistics held together with duct tape

with the big hubs gone, companies have to rely on a patchwork of tiny warehouses, which is like trying to run amazon out of your grandma’s garage. costs go up, efficiency goes down, and the only thing moving fast is the blame. the regime talks about “technological upgrades” and “modernization,” but that’s just code for “we have no idea what we’re doing, but it sounds good on tv.”

the real story is that the entire supply chain is held together with duct tape and wishful thinking. the regime cant protect its own, cant deliver on its promises, and cant even keep the lights on at the country’s biggest online store.

you cant eat propaganda, you cant drive on hope, and you sure as hell cant rebuild an economy with nothing but excuses and a busted wildberries login.

propaganda on repeat, reality on mute

every night on state tv, you get the same routine: deny there’s a problem, blame the west, declare victory, repeat. its like watching a sitcom where the punchline is always “sanctions dont work,” even as the shelves get emptier and the lines get longer. the regime’s biggest export isnt oil or gas anymore, its excuses.

“import substitution” is the new national sport, but all it means is slapping a “made in russia” sticker on something that barely works and hoping nobody asks too many questions. the spiral isnt just economic, its psychological. the people who thought they could sit this out, keep their heads down, and keep making money are finding out that the front line has a way of coming to you.

the hits keep coming. every time a warehouse goes up in smoke, another chunk of the economy goes with it. the regime’s answer is always the same: more spin, more denial, more magical thinking. but you cant run a country on vibes and propaganda forever. at some point, reality kicks down the door and asks where the money went.

no exit, no brakes

so what’s the endgame? the spiral keeps tightening. no gas, no logistics, no jobs, no growth. the regime’s only play is to keep the circus going as long as possible, hope the audience doesnt notice the tent’s on fire, and pray nobody asks for a refund. the people at the top will be fine - they always are. but for everyone else, its a slow-motion collapse, one missed delivery and one empty gas tank at a time.

the wild part is, this was all avoidable. but when your whole system is built on lies, theft, and pretending everything’s fine, you end up here - watching your “economic miracle” rot in the fields and burn in the warehouses. the only thing left to export is cope, and even that’s running low.

death spiral is about right. welcome to the spiral. no exit, no brakes, just vibes and ashes.

russian tv: everything is fine, sanctions dont work, we are winning. russian reality: the only thing growing is the unemployment line and the list of things that dont work.