The combination of Western sanctions and the collapse of oil prices is exposing deep structural problems in Russia’s economy, and it is showing the petro-state model of governance developed by Vladimir Putin is unsustainable. Yet just because Putin’s system can’t last doesn’t mean its demise is imminent.
Weak links in Russia’s petroleum-refinery network and the Kremlin’s power play in Ukraine are shortchanging Central Asian petrol markets, importers complain. With alternatives expensive or unfeasible, and regional refining capacity severely limited, local energy executives are ruing Moscow’s traditional sway over the region’s petrol supply.
A diamond deal that gives Armenia duty-free access to rough diamonds from Russia could offer Alrosa, the semi-government-owned Russian diamond company that provides roughly 27 percent of the world’s rough-diamond supplies, a dodge from potential European-Union sanctions, Armenian diamond-industry professionals believe.
Moscow's sweeping ban on food imports is meant as a slap in the face to Western powers for imposing sanctions on Moscow over Ukraine. But the ban is also causing food prices to rise in Russia, which is a major importer of food and has few immediate supply alternatives.
Here are four things to know about Moscow's food war and its impact.
Amid deteriorating relations with the West, Russian President Vladimir Putin is looking to diversify a Russian economy that is tightly linked to European markets. Fittingly, an old Soviet-era satellite state seems eager to lend a helping hand.
Vladimir Putin’s administration in Russia intends to cover the burgeoning costs of annexing Crimea by raiding taxpayers’ pension contributions, raising utility rates, and canceling major infrastructure-development projects and reallocating funds.
State Capitalism is weighing down the Russian economy, and there is not much Russian President Vladimir Putin can do to prop up the system, a leading Western expert contends. The trend raises questions about Putin’s ability to maintain his Kung-fu grip on power.