- Russia’s economic performance has been weakening for several years. The simultaneous fall in the price of oil and the Ukraine crisis have merely exacerbated pre-existing tendencies.
- The combination of stagnant GDP growth and lower oil prices threatens to reduce federal government revenues, but spending commitments are likely to prove hard to trim.
Wednesday, 25 February 2015
New Chatham House Paper by Dr. Richard Connolly - Troubled Times: Stagnation, Sanctions and the Prospects for Economic Reform in Russia
Friday, 6 February 2015
By Dr. Richard Connolly
Angela Merkel and Francois Hollande’s push for peace in Moscow has helped fuel optimism about the prospects for Russia’s spluttering economy. On the morning of the meeting, the rouble had strengthened against the dollar and the euro, and both the dollar and rouble-based sections of the Russian stock exchange saw sharp gains.
Unfortunately for those in the Kremlin, however, Russia’s economic woes are so deep-rooted that peace in Ukraine is likely to offer only temporary respite at best.