The Decline Of The Russian Economy

Map Of The Russian Federation

Economic Darkness Descends on Putin's Russia
-- Time Magazine

The friend giving me a ride swapped just a couple of grim words with his wife on his cell phone, then turned to me. "They fired her," he said sadly. "There go our plans." The wife, who had enjoyed a cushy bank job, then joined the tens of thousands of Russia's new middle class who have found themselves newly unemployed.

Later, I found another friend pacing his office atop one of the newly built skyscrapers of "Moscow City," the real estate symbol of Prime Minister Vladimir Putin's ambitions of turning the Russian capital into a new world financial center. Several major companies had already moved out of these costly quarters to way beyond the city's municipal boundaries, where they still can afford the rent. My friend's company will soon follow. The Vneshtorgbank (VTB), a major state-run bank, has just canceled its long-planned relocation to the Federation Tower, the tallest of the Moscow City towers. Soon they will stand empty, symbols of failure.

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My Comment: The centralization of the economy, kicking out foreign partners/investors, relying on "big" business instead of small to medium businesses to grow the economy .... all of these measures are now coming home to roost.