Economic Crisis


Revealing Russia’s Offshore Addiction

The Panama Papers cannot do much damage to the reputation of Putin and his friends, and they have not exposed criminal activity by prominent Russians. But they shed light on a fundamental problem: not even elites trust Russia’s economic, legal, or political system.

Avoiding the Blame for Russia’s Economic Woes

As Russia enters its second year of economic malaise, elite interest groups that rely on revenue streams from the federal government continue to oppose state budget cuts. But they have successfully managed to escape responsibility for the economic crisis.

Magna Carta, Not Money: Putin’s Privatizations

The Russian budget won’t be saved by the new round of privatizations announced by the Russian government. What’s more important is how they set out the rules of behavior in the Russian elite.

Ins and Outs of the Russian Economy

External factors are having little impact on the health of the Russian economy. Sanctions and counter-sanctions are not a big factor either. An effort to make Russia self-sufficient and rely on import substitution poses a much bigger danger.

Sources of Russia’s Stagnation

Lack of investment, a deficit of trust of the private sector in the government, and a drain of migrant workers and professionals make it much harder for Russia to recover from its current economic malaise.

Predicting Russia’s Economic Health

Over the last decade and a half, the Russian economy has undergone a classical resource cycle, and now it lacks both the capacity and the momentum for new growth. But the wealth accumulated in the boom years will insulate the country against a crash for at least three years.

Are Russians Feeling the Economic Crisis?

Thus far, the Russian government has been able to quell popular discontent over the ongoing economic crisis. But time is running short: in a year and a half to two years, the Kremlin will have a real crisis on its hands.

What’s in Store for the Russian Economy in 2016?

There is no reason to expect any serious changes in the Russian economy in 2016. The coming year is likely to see a behind-the-scenes struggle between two special interest groups: those who will profit if industries are nationalized, and those who will benefit from foreign investment.

Boomerang Sanctions: Russia Punishes Turkey

Turkey is one of Russia’s strongest trade partners. Imposing economic sanctions on yet another country is likely to hurt Russia itself the most.

What Can We Learn from Russia’s 2016 Budget Proposal?

The 2016 budget openly declares that Russia will not compete with the rest of the world in science and technology—at least not outside the defense sector. It suggests that the Kremlin has chosen to wait for oil and gas prices to increase (regardless of the likelihood of this actually happen) while continuing to support the military-industrial complex.
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