Why The Russian Economy Defied Predictions of CollapseWatch this video on YouTube Following the invasion of Ukraine in March 2022, the Western powers introduced unprecedented levels of sanctions, freezing $300bn of Russian assets, the Ruble collapsed, inflation rose, and the Russian economy headed into recession. It seemed the perfect storm to create deep economic problems. …
The Russian fossil fuel industry is facing a real crisis. Western sanctions and Russia’s own embargo on exports to the West mean that the industry is facing long-term decline. Already there have been reports of ‘capping’ of natural gas facilities. This means that natural gas is burnt at its source because the industry cannot sell …
In March 2022, the EU, US and other western countries introduced a range of sanctions on the Russian economy. These sanctions have hurt the Russian economy, but they are also causing unprecedented strain on the West and Europe in particular. The big economic threat to Europe involves: Higher inflation from rising energy prices Threat of …
In the aftermath of the invasion, the Russian Ruble rallied, becoming one of the best-performing currencies in the world. This perplexed many commentators, who assumed sanctions on Russia would lead to rapid economic deterioration. But, the strength of the Russian Ruble masks the underlying reality. The high value of the Ruble was due to stringent …
Russia is a medium sized economic with a GDP of $1.48 trillion (USD) about half the size of the UK $2.7 trillion (2020) The strengths of the economy is based on exports of oil and natural gas. And with these sales, since 2014, Russia has built up foreign currency reserves of $630bn – a large …
With economic sanctions and a plummeting price of oil, the Russian economy is seeing a real economic crisis. The value of the rouble is falling – causing inflation and a decline in living standards. Government tax revenues are falling as oil tax revenues decline. On top of a falling Rouble, the economy faces recession due …
In February 2022, western economies imposed sanctions on Russia in response to the invasion of Ukraine. These sanctions were wide-ranging including banning exports of many goods to Russia, freezing Russian foreign reserves and recently the EU has proposed banning Russian oil exports. In response, Russia has retaliated by cutting off gas supplies to Europe causing …
Periods of high oil prices frequently lead to periods of recession shortly after. There are two main reasons for this. Higher oil prices reduce disposable income leading to lower spending. Higher oil prices push up inflation causing Central Banks to increase interest rates. Oil prices and recession With oil prices rising above $100 because of …