Is The Kremlin Starting To Panic?

Russian President Vladimir Putin leaves after his annual end-of-year news conference in Moscow, December 17, 2015. REUTERS/Sergei Karpukhin

William E. Pomeranz, Reuters: A whiff of panic in the Kremlin as Russia’s economy sinks further

Only one month in and 2016 has already delivered a series of devastating economic blows to Russia. As the price of oil and the value of the ruble plummet, so, too, does the standard of living of the average Russian citizen. Russia’s central bank has been widely praised for not spending the country’s hard-currency reserves to support the ruble — an admittedly losing proposition — yet it has done so on the backs of the Russian people.

The public has responded stoically and largely without panic, even as they see their middle-class aspirations crash. But a whiff of desperation can now be sensed, and it is the Kremlin that appears the most perplexed about what the next steps it should take.

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WNU Editor: I have been warning about this since 2014 .... falling oil prices and a declining Russian economy will impact Russian President Putin's popularity, and in turn it will impact his chances on being re-elected as Russian President in 2018. My prediction on what will happen this year (and next) still holds .... if the economy does not improve expect strikes and widespread demonstrations at the end of this year, and if there is no improvement in 2018 .... Putin will definitely be a lame duck with a  popularity rating in the 30s (if not lower). The only thing that Putin has going for him is the opposition .... they are disorganized.  But a year is an eternity in politics .... and who knows what Russia's opposition parties may present in 2017.