prices. It does not properly represent the full price structure of the Russian economy. So sectors like the MIC are grossly underestimated
by a factor of 2.5; the factor for the MIC is closer to 6. Also, we still have long term transients from 1990 related to lack of pricing
of certain activity. The Russian economy in physical terms is not mapped in fine granularity to monetary space. By contrast, everything
in the western developed world is saturated with money chasing. Corporations do not volunteer any effort, they contribute to charity
campaigns. In Russia companies still engage in social welfare to some extent as a legacy of the Soviet period.
The real estate sector mentioned by Mercouris is the same issue as the MIC. Prices have no similarity to western ones. The problem
with the PPP is that the methodolgy used to calculate it is deficient and makes it a glorified Big Mac index. The economy cannot be
mapped to a burger.