80 comments

  • Etheryte 3 hours ago

    Articles like these are a good example that while Russia often tries to downplay or outright deny the sanctions have any effect on them, they do work. This is only one specific example with a specific plane model, but their whole airline industry is facing similar issues on many fronts. Many repairs that used to be business as usual are now either prohibitively expensive or downright impossible due to the sanctions. Similar problems exist across a wide range of industries in Russia. There's a reason why they closed off their stock market, they can't afford to let the full impact be visible.

    • ethbr1 3 hours ago

      The point of modern sanctions is not that it makes import impossible (look at Russian circumvention for dual-use military technologies), but that it makes import at whole-economy scale more expensive and unreliable.

      And ultimately that's what imposes economic costs.

      It'll be curious how much of the gap is filled by substitute Chinese goods. (E.g. the domestic CFM-alternative engine projects [0])

      With the wrinkle that Russia and China are united by their geopolitical opponents more than their friendship, and Xi doesn't seem thrilled about shackling the Chinese economy to the consequences of Russian war.

      [0] https://en.m.wikipedia.org/wiki/ACAE_CJ-1000A

      • sedan_baklazhan 2 hours ago

        Russia is a civilian aircraft producer. There's no need for Chinese airplanes (which they have troubles with).

        • JumpCrisscross 2 hours ago

          > Russia is a civilian aircraft producer

          Massive difference between airliners and aircraft. Russia has not shown itself capable of mass manufacturing airliners. (Or even advanced aircraft for that matter.)

          That said, as a petro state, they’re fine running inefficient engines across their skies.

          • sedan_baklazhan 2 hours ago

            Are you serious? Look up SSJ-100 production numbers.

            • JumpCrisscross 2 hours ago

              > Look up SSJ-100 production numbers

              Now look at them post sanctions.

              The SSJ-100 contains far more important systems (not parts) [1] than e.g. Embraer’s regional jets. It was designed with consultation from Boeing, including throughout manufacturing. Russia’s indigenous jets are terrible, and there is no reason to expect them to improve, they can’t compete against the Chinese for the anti-Western market.

              To be fair to Sukhoi, this is how Boeing builds planes. If America were sanctioned by its allies, I’d similarly argue that Boeing, too, is incapable of mass manufacturing airliners.

              [1] https://web.archive.org/web/20190402154855/https://www.uacru...

            • cooljacob204 an hour ago

              Compared to other airliners those production number are small.

              • sedan_baklazhan 24 minutes ago

                Russia only needs to supply herself, not other markerts. Which manufacturers do you compare with?

            • untech 2 hours ago

              [flagged]

              • sedan_baklazhan 2 hours ago

                Dear untech, 1. I am both a Russian and a Russian citizen. 2. I comment a lot on Russia-related topics because I'm a Russian and I know quite a lot about Russia. 3. I'm also a software developer so I enjoy reading most HackerNews content. 4. Talking with people and learning their opinions seems worthwile to me. It's not really a waste of time.

                • JumpCrisscross 2 hours ago

                  For what it's worth, I appreciate your comments and find them civil and informative. (American. Comment a lot because Ukraine is my pet war.)

                  • untech an hour ago

                    What is a pet war?

              • JumpCrisscross 2 hours ago

                “Please don't post insinuations about astroturfing, shilling, brigading, foreign agents, and the like. It degrades discussion and is usually mistaken. If you're worried about abuse, email hn@ycombinator.com and we'll look at the data.”

                https://news.ycombinator.com/newsguidelines.html

                • untech 2 hours ago

                  I don’t think they are shilling, but they look a bit obsessed with the topic. I wanted to point out to them how this looks from the outside.

      • protomolecule 2 hours ago

        Thanks, Russia has its own engines. SJ-100 and MC-21 are about to be tested with new PD-8[0] and PD-14[1] engines.

        [0] https://www.aex.ru/news/2024/10/23/276972/

        [1] https://www.aex.ru/news/2024/11/21/277964/

        • ivan_gammel 24 minutes ago

          No, Russia doesn’t. Those engines are tested, i.e. still in development, not in serial manufacturing. The first shipments were pushed back by 3 years and the planned production volume reduced recently. There’s still risk that this is going to happen again, so we won’t see first commercial flights on those engines for several years. And existing fleet degrades faster.

    • cen4 2 hours ago

      The sanctions don't have a goal. So anyone can say anything. Besides Air Transport is a small ass part of GDP. Their MIL complex is on over drive, more than compensating for whatever hits the other sectors are taking. Their GDP is growing faster that all other major Western Economies. The US & EU are not serious about winning this war, mostly because they don't have confidence in themselves that they can.

      • dismalaf 2 hours ago

        > Their GDP is growing faster that all other major Western Economies

        Growth that depends entirely on government spending can only last so long... First you blow all your reserves, then if/when you start printing money and hyperinflation kicks in even if the nominal GDP in the domestic currency appears to be rising, real GDP falls fast.

        Because Russia's essentially a petro-state, they had sizable cash reserves with which to prop up their economy. Now you can see with the price of the Ruble that they've run out of the will to prop it up using foreign reserves (probably running low on foreign currency) and most estimates of their economic growth is that it'll stall or they'll see a recession for 2024 and beyond.

        > The US & EU are not serious about winning this war, mostly because they don't have confidence in themselves that they can.

        You're right that the west isn't serious. It's not that they don't think we can, it's that they're afraid the slightest hit to our living standards will erode support. While they might be right, we're sleepwalking into an even worse scenario...

        • ivan_gammel 41 minutes ago

          >Now you can see with the price of the Ruble that they've run out of the will to prop it up using foreign reserves (probably running low on foreign currency)

          It’s not that simple. I don’t think Russia is low on foreign currencies. Due to sanctions and effects of war spending Russian economy doesn’t behave as a normal one. Recession is going to happen, sure, because the current high demand on domestic market is matched by credit-driven growth of supply. As soon as war spending drops, demand weakens and interest rate drops, but some of the businesses which play the chicken game with central bank will have problems. So yes, recession is going to happen. But they will not burn foreign reserves to zero, simply because some of them are frozen and some are in rupees and yuan, which are not easily convertible.

          • dismalaf 8 minutes ago

            > But they will not burn foreign reserves to zero

            No, of course not. But it's clear they've burned through enough that they've given up trying to prop up the Ruble, as they did in 2022.

      • JumpCrisscross 2 hours ago

        > sanctions don't have a goal

        You missed the goal of sanctions on Russia?

        > MIL complex is on over drive

        This is correct. The Russian economy is doing fine.

        > mostly because they don't have confidence in themselves that they can

        This is wrong. It’s a resource-commitment problem. Not one of capabilities or confidence.

        • the_mitsuhiko 2 hours ago

          > This is correct. The Russian economy is doing fine.

          The Russian economy is doing "mixed". It's a war economy which can be propped up for quite a while but it has significant structural issues that will take years to repair. The country won't fail, but it will further struggle because of the decisions made my leadership.

          I find this general attitude of "Russia has no issues" that are going around on the internet quite confusing if pretty much every economic indicator says otherwise. Let alone the fact that a meaningful part of the working population is fighting or left the country rather than engaging in the economy.

          • JumpCrisscross 2 hours ago

            > country won't fail, but it will further struggle because of the decisions made my leadership

            It’s removing itself as a conventional threat to Europe for generations to come. And as much as Beijing is a rival to Washington, they’re rational in a way Moscow is not. Russia as a Chinese suzerainty is probably a better world configuration than Russia as a sovereign regional power.

            > find this general attitude of "Russia has no issues" that are going around on the internet quite confusing if pretty much every economic indicator says otherwise

            The sanctions’ goal was to cripple the Russian economy in a militarily-relevant way. On this they failed and that has been widely discussed. Folks might be extrapolating that discussion inappropriately.

            • ivan_gammel 30 minutes ago

              > It’s removing itself as a conventional threat to Europe for generations to come

              How? Surely not in military sense. If anything, they gained experience of modern drone warfare and tested and refined their technology.

      • analognoise 2 hours ago

        What? The EU and US aren’t in the war at all. We’re almost 3 years into Russia being unable to conquer a country 1/3 their size right on their border.

        On top of all the damage done to them, and their advanced EW capabilities that have been captured and sent for analysis in the US, and exact knowledge of things like Kinzhal, the lost flag ships and submarine, the modern sea drones - this war is a disaster for Russia.

        The US and EU aren’t even involved and Ukraine is holding its ground. Russia is doing so poorly that they’re not even considered a threat anymore in the West.

        Their “GDP” numbers belie systemic economic weaknesses that show up when they have to BARTER for food. That’s how worthless their currency is.

        Russia is basically completely pathetic at this point - they can terrorize countries that share a land border with them but can’t project power even past Ukraine.

        They had to import starving North Koreans with antique shells and Iranian RC toys. Some superpower.

        The US and EU don’t care about the war in the same way someone with a Ferrari doesn’t have to race someone with a Honda Civic - because they’re not a threat. Let the person in the Honda rev their engine and scream that they’d win - they’re just stupid. They look stupid.

        They’ve lost what, 500k soldiers? They’re so much weaker than the Soviet Union it’s laughable.

        The rest of the world disrespects them so much that they had $300B worth of Russian assets outside their country - and they were all seized. That was half their famed “sanction proofing”! What are they going to do about it? Nothing.

        They have “hot” GDP based on faux demand for wartime goods - as they trade Rubles for oranges because nobody wants their currency. Does that sound viable to you? Laughable.

    • sedan_baklazhan 3 hours ago

      >There's a reason why they closed off their stock market That's a completely false information. The stock market isn't closed.

      • Etheryte 2 hours ago

        Foreigners are not allowed to sell on the Russian stock market from the Russian side [0] and they're generally not allowed to buy from the sanctions side. This means that as a foreign investor you're barred from trading in any useful meaning of the word. Buy and hold in the hopes that you might be able to maybe some day sell, whether that's in a year, ten years, or a hundred, is not really a viable strategy. That's also the reason why investment and asset management companies of all sizes are trying to find their exits from the Russian market, see for example Van Eck [1], just the latest addition in a long line of many:

        > Regulatory and market conditions do not currently permit the Funds to conduct transactions in the local Russian market.

        [0] https://www.reuters.com/business/finance/limited-russian-sto...

        [1] https://www.vaneck.com/us/en/blogs/emerging-markets-equity/r...

      • dcrazy 3 hours ago

        The post you are quoting did not say they closed the stock market. They said they “closed off” the stock market, which implies denying access to certain classes of investors.

        That said, I’m not finding anything about Russia prohibiting foreign investment, but I am finding a lot about sanctions prohibiting dollar and Euro investment in Russia.

        • sedan_baklazhan 3 hours ago

          I have an investor account and I know for sure the stock market isn't closed.

          • jhugo 3 hours ago

            “Closed off” means “restricted access to”. It doesn’t mean “closed”. I have no idea what restrictions the parent was referring to, but they weren’t saying that the stock market shut down.

            • the_mitsuhiko 2 hours ago

              As a "westerner" you will need a Russian residence permit I think to trade. I at least would not know how you can actually buy something in MOEX as someone based in Europe.

            • sedan_baklazhan 2 hours ago

              Perhaps you're right. English isn't my native language - thanks for explaining.

    • hammock 3 hours ago

      Good point. Worth noting that the Russian newspaper reporting this, Kommersant, is the most liberal/independent of the three business dailies in the country and is sort of the Babylon Bee of Russia, if the BB wasn’t satire: it spells its name with pre-Revolution Cyrillic and uses creative neologisms, wordplay, metaphors, and legally imposed euphemisms in its stories to maintain a degree of independence in periods of severe state censorship

    • reducesuffering 3 hours ago

      The Russian Ruble is also starting to do very bad again:

      https://www.xe.com/currencycharts/?from=USD&to=RUB&view=5Y

    • 3 hours ago
      [deleted]
  • loeg 3 hours ago

    Great to see sanctions working. Withdraw from Ukraine and sanctions end.

    • JumpCrisscross 3 hours ago

      > Withdraw from Ukraine and sanctions end

      This will be Europe’s first post-War test of security integrity.

      My suspicion is it will fail—that Europe as a single force, versus collection of countries crowded on a continent, is an American invention, and without American strength will dissolve divided. But my hope is it will succeed.

      • rtsil 3 hours ago

        There's an argument that the US did everything to prevent Europe from coalescing into a single force and only want Europe to be a single market, not much more, for instance by convincing Eastern European countries to trust their protective umbrella rather than the French-German domination.

        • JumpCrisscross 3 hours ago

          > the US did everything to prevent Europe from coalescing into a single force and only want Europe to be a single market, not much more

          I mean yes, we did. Western Europe was unifying under Berlin in the 1940s.

          > by convincing Eastern European countries to trust their protective umbrella rather than the French-German domination

          Militarily speaking, modern Germany is irrelevant. (Partly due to how it’s been managed post-War.) Especially to Eastern Europe, whose security concerns require a nuclear umbrella.

    • sedan_baklazhan 3 hours ago

      Surrendering because 2.5% of the fleet may be not working sounds reasonable to me!

    • otabdeveloper4 3 hours ago

      > and sanctions end

      Source on that? No documented cases in history of U.S. sanctions ever ending.

      (Which is why from a game theoretic point of view the only winning move is import substitution, not kowtowing to whatever terrorist demands.)

      • loeg 3 hours ago

        Sanctions against Apartheid South Africa ended: https://en.wikipedia.org/wiki/International_sanctions_during...

        Sanctions on Iran were relaxed in exchange for partial cooperation: https://en.wikipedia.org/wiki/International_sanctions_agains...

      • audunw 2 hours ago

        I guess we don’t say that USA had “sanctions” against the Soviet Union, but there was a monumental improvement in economic relations after the Soviet Union collapsed, no? So we have a direct example from history from the same region.

        I would say that Vietnam also shows that economic relations can improve a lot even without a fundamental change in the regime.

        China is also an example where economic relations improved.

        I don’t see any reason to think that sanctions can’t be lifted. But it may require a complete collapse of Putins regime/party for it to happen on a short timescale. Is there any reason to think USA wouldn’t be willing to open up to a new leadership if they have a radically different attitude and pull out of Ukraine?

        If Russia turns into something like North Korea or Iran, then yeah, the outlook is not good. But why should it be?

        From a game theoretical point of view: I don’t think any leader of any country wants to end up like North Korea, so the precedent being set is good.

        • otabdeveloper4 2 hours ago

          > but there was a monumental improvement in economic relations after the Soviet Union collapsed, no?

          No. None of the sanctions levied against the USSR were lifted and still technically apply to Russia. (Enforcing them is another matter.)

          > I don’t think any leader of any country wants to end up like North Korea

          North Korea is doing better than South Korea on every metric except "consumer goods availability" and "international relations". Not sure you're making your case here.

          > ...or Iran

          Iran is more modern, developed and free than any other middle eastern country. (That includes Israel.)

          Your ideas are wildly out of sync with actual reality.

          • loeg 15 minutes ago

            > North Korea is doing better than South Korea on every metric except "consumer goods availability" and "international relations".

            This is very, very false and a pretty strong signal there's no useful discussion to have here.

  • xeeeeeeeeeeenu 3 hours ago

    Belsat's article[1] is a bit more detailed and I found this fragment interesting:

    >According to Andrei Kramarenko, a leading expert at the Institute of Transport Economics of the Higher School of Economics, passenger traffic in Russia has almost stopped growing due to insufficient supply. In September, Russia's Ministry of Transport revised its annual forecast to last year's level of 103 million passengers carried by aircraft.

    >Seat occupancy on Russian passenger planes this summer reached 93-95 percent. The expert believes that the situation will fail to improve next year, which may prompt airlines to simultaneously reduce average annual flight times and maximize redistribution of their share of seat supply toward the summer when effective demand and ticket margins are several times higher.

    So basically it seems that their airlines are stretched thin.

    [1] - https://en.belsat.eu/83600150/russia-half-of-airbus-a320-and...

    • slater 3 hours ago

      Is a ~95% seat occupancy considered bad...?

      • jhugo 3 hours ago

        The comment you replied to says that they can’t meet demand due to insufficient supply (due to grounded aircraft). Very high occupancy is consistent with that. If Delta suddenly had half as many aircraft they would always be full too.

      • hammock 3 hours ago

        Counterintuitively, yes, because air travel is a Cournot good and you grow/make money by expanding supply (more planes), which they can’t

        • slater 9 minutes ago

          Gotcha, thanks!

        • sedan_baklazhan 3 hours ago

          Which they can, because Russia produces aircraft domestically.

          • ivan_gammel an hour ago

            They have a big problem with producing modern engines and won’t catch up with the demand without Western suppliers for at least a decade, which means that in a couple of years this is going to be a huge problem.

          • the_mitsuhiko 2 hours ago

            In theory yes, in practice deliveries of domestic aircraft have stalled. The Sukhoi Superjet 100 for instance hasn't had a delivery in 2 years and I think the Tu-204 also did not get any deliveries though they expected some this year. It is however also very hard to find out what exactly is going on, because the information regarding civil aviation is quite restricted nowadays.

          • unsigner 2 hours ago

            Barely. The Sukhoi Superjet trickles out of the factories, and the other two projects have been delayed again and again.

      • rtsil 3 hours ago

        It's bad if half of your fleet is also grounded.

        • slater 9 minutes ago

          Gotcha, thanks!

  • layer8 3 hours ago

    The article also notes that A320/A321neo only make up 5% of the fleets of Russian airlines.

    • sedan_baklazhan 3 hours ago

      So essentially this news is about 2.5% of the fleet. The article also talks about early airplanes of these models being unreliable.

      • the_mitsuhiko 3 hours ago

        What is "the fleet"? This hits different companies in different ways. S7 which prior to the war was a very well received and modern airline has a meaningful number of those. For S7 31 out of 39 planes (with those engines) are out of service or about to go out of service. The total fleet today is only around 85 planes depending on how you count, and most of the planes that were ordered are not being produced for S7 at the moment. That's a pretty significant blow to the airline.

        • sedan_baklazhan 3 hours ago

          Total fleet of civilian airplanes. Specifically S7 seems to be quite impacted (and they're about the only company impacted), but it sounds like it's mostly due to the low quality of these planes.

          • the_mitsuhiko 3 hours ago

            The problem is not the planes, but the maintenance requirements for the engines on those planes and Russia cannot do any maintenance due to the sanctions.

            In general flying in Russia has been a pretty questionable experience since the beginning of the war. Their regulator is still barely functional at this moment and a lot of secrecy is happening. For instance you will find barely any incidents reports any more.

            We have been intentionally avoiding Russian airlines for flights in and out of Russia for our family for the last few years due to safety concerns.

            • sedan_baklazhan 3 hours ago

              I haven't heard of any accidents in civilian air traffic in Russia in last few years. Of course you're free to make your choices. Anyway, don't overestimate the issue: 2.5% of the fleet seems to be grounded right now.

              • throw0101d 41 minutes ago

                > I haven't heard of any accidents in civilian air traffic in Russia in last few years.

                Do we count the (possible) "on-purposes" in the accident† count?

                * https://www.bbc.com/news/world-europe-66599733

                † "Accident" is discouraged as a term, generally speaking: https://crashnotaccident.com

              • jhugo 3 hours ago

                Hmm, I think you may have just not been paying attention? There was the Superjet that crashed and burned at Lukhovitsy just a few months ago, the A320 that ran out of fuel and landed in the field near Novosibirsk a year ago, the AN26 that crashed in 2021, the Superjet that crashed and burned at Moscow in 2019…

                • sedan_baklazhan 2 hours ago

                  I forgot about the incident at Lukhovitsy - that was w/o passengers. 2019/2021 incidents are completely out of scope of "recent years".

              • the_mitsuhiko 3 hours ago

                > I haven't heard of any accidents in civilian air traffic in Russia in last few years.

                Not very hard, now that reports are no longer publicly available. Prior to 2022 you would still find that information on avherald and other places. That said, even with the little amount of information going out, in the last 5 years alone Russia had at least 8 hull losses with more than 80 fatalities.

      • lawn 3 hours ago

        It's also hints at the much larger maintenance problem that Russia has.

      • layer8 3 hours ago

        Yeah, it’s more about the maintenance requirements of these models than anything else.

    • signatoremo 3 hours ago

      They didn’t mention of Boeing fleet but the situation is supposedly the same. Together, while only small percentage, they are more efficient, can transport more, go farther, need less maintenance, so more desirable.

  • DrBazza 3 hours ago

    Don't worry, the Russian rail network is in a worse state - https://www.newsweek.com/russian-railway-collapse-sanctions-...

    • sedan_baklazhan 3 hours ago

      Russia doesn't import RW rolling stock. This is plain lies.

  • ivan_gammel 3 hours ago

    Original article in Russian: https://www.kommersant.ru/doc/7312839

  • seanieb 3 hours ago

    Weren’t lots of those planes leased from an Irish company, and now effectively stolen property?

  • jdalgetty 3 hours ago

    At this point, what would Russia have to do to get back onside with the rest of the world? Obviously, ending the conflict with Ukraine is the first step, but what else would they need to do? How long would it take for them to get out of the doghouse, so to speak?

    • jzawodn 3 hours ago

      I think a major change in leadership would be the first step.

    • lawn 37 minutes ago

      They can follow the leads of Japan and Germany.

      Unconditional surrender, with a complete cultural restructure and admitting to the atrocities, and prosecuting everyone responsible is a good start.

      But of course, that won't happen anytime soon.

  • tehjoker 2 hours ago

    Why don't we just do a peace deal? Over a million have died over nothing so far.

    • lawn 34 minutes ago

      All Russia have to do is back away you know.

      What? They don't want to?

      Then maybe we can just forget about the genocide, give Russia time to rebuild their forces and recover their economy, so they can repeat the process in a couple of years?

      (While allowing them to continue their genocide on occupied territory. But at least we don't have to read about it!)

  • lavren1974 4 hours ago

    [flagged]