Tuesday, November 18, 2014

Russian Economy Facing Hard Times As Sanctions And The Drop In Oil Prices Start To Bite



Russia Sees Recession Next Year If Oil Price Falls to $60 -- Bloomberg

Russia’s economy will sink into a recession next year if the price of oil slumps to $60 a barrel and the U.S. and its allies tighten sanctions over the conflict in Ukraine, Finance Minister Anton Siluanov said.

The economy of the world’s largest energy exporter won’t grow faster than 1 percent in 2015 even if oil prices hold steady and the severity of sanctions remains unchanged, Siluanov said in an interview in Singapore yesterday. The price of Brent has slumped by almost a third this year to below $80 a barrel.

Read more ....

More News On The Russian Economy

Russian economy to sink into recession at $60 oil price — finance minister -- ITAR-TASS
Russia's economy minister sees inflation rising above 9 percent -- Reuters
Russia Sees Higher Capital Outflows With Ruble Near Record Level -- Bloomberg
Russia Will Lose $130 Billion As Capital Flees The Country -- Yahoo News/Business Insider
Putin Readies Aid as Rosneft’s $21 Billion of Debt Looms -- Bloomberg
10 Kremlin Moves That Hurt Russia's Economy -- Alexey Eremenko, Moscow Times

My Comment: Putin believes that there are some pluses for Russia to have these sanctions in place .... PUTIN: There's A Plus Side To The Economic Sanctions Making Russians Miserable (Business Insider). I know both supporters and opponents to Putin in Russia .... but it is moments like this that even those who strongly support Putin shake their heads.

Update: The above Chinese video news report provides a good summary on the changing mood of Russians towards Putin, the economy, and towards the West.

1 comment:

D.Plowman said...

Or...

It could also put those who strongly support Putin into a more nationalistic frame of mind and put the blame squarely on the EU/West/Nato.