Very “unexpectedly”: because of the war with Ukraine, the business of Russians went bankrupt in America

After Russia invaded the lands of independent Ukraine, many European and world brands refuse to cooperate with the Russian Federation. In addition, the war with Ukraine hits the economy of the aggressor country so hard that the business is closed due to lack of money.

It is reported by Bloomberg.

So, in America, the Buyk grocery delivery service, which was founded by the Russians, stops working.

The bankruptcy filing was filed on March 17 due to “the inability of investors to provide funding.”

And on March 9, the service fired 900 people — almost all of its employees, including CEO James Walker.

As Walker himself explained, the founders stopped funding the company due to sanctions, as it is now difficult to transfer money from Russia abroad.

The Russians have been trying to salvage their brand for a while and have been exploring different options, but have failed.

Note that Buyk began operating in Manhattan last summer. In June, he raised $46 million in investment.

Russian default is close

The sanctions that Western countries continue to impose against Russia for its invasion of the territory of Ukraine are seriously hitting the economy of the aggressor. The external debt of the Russian Federation and its companies reaches about 150 billion dollars, and analysts predict an imminent state default.

“Russia’s default in the late 1990s was caused by domestic debt. Therefore, a foreign currency default will be the first in history since the 1917 revolution when the Bolsheviks refused to recognize the debts of the tsar,” analysts say.

Previously, we talked about whether Russia should count on China’s help and when a complete collapse of the Russian economy could happen.