Russia’s economy

Tipping the scales

The crisis in Ukraine is hurting an already weakening economy

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a man in reply to guest-siejowo

When Ukraine decided to be friends with Europe, Russia sent troops without insignia across the border to cause chaos.

Russia then openly invaded Crimea.

Afterwards, Russia sent more troops to really wreck things in Ukraine.

Before trying to paint Putin as a good guy, ask yourself what happens to a Russian who publicly opposes the government. He is jailed or shot.
In the west stridently opposing the government gets you on national tv.

The Living Tissue

you can clearly see by the picture Russia is already a garbage dump. And the gloomy sight of the woman clearly depicts the general sentiment of Russians.
Is that a soldier selling fish to complement his surely shitty salary?

Can you imagine waking up in the morning and realizing you are Russian? or even worse, can you imagine waking up in the morning and wanting to be Russian? its just nuts!!


It is quite amusing to read posts from Russia haters haranguing about Russia's miserable economy, zero contribution to the global economic output and its excessive dependence on oil and gas exports. But they completely miss the point. You only reinforce the sentiment that is currently gaining ground in Russia: the West is not interested in a stable, prosperous Russia. It would be quite comfortable with a democratic Russia but only under the leadership of people like Yeltsin. Fortunately, Russians drew their conclusions about how open the West was towards them in the 1990s. While Russia was on the verge of an economic collapse, the West conceitedly sneered at Russia and looked forward to the moment when Russia would finally disintegrate into smaller parts that would be up for grabs. Let's face it, the West does not need a rich, prosperous Russia. It is only interested in its natural resources. So I do not understand why Russians should trust the Western countries at all. Since its foundation Russia has always tried to fit in, contribute to the Western community culturally and scientifically. But these attempts were always met with hypocritical judgment or they were never good enough. So Russia is currently pursuing its own policy and path safeguarding its vital national and geopolitical interests. And even if it means economic sacrifices, Russians are ready for that. The nation that went through the horrors of the Second World War is capable of withstanding any economic pressure from the West. Do not overestimate the importance of Western technology. I am pretty sure Russia can manage without Iphones. And for what it's worth, Russia is not a third world country no matter what people say (try to compare it with some third world countries and then make such statements). It has a rich history and culture and a strong scientific and technological potential. Russia will never cease to exist despite unrelenting attempts of its enemies to annihilate it. The will of the Russian people to live in their homeland and to hand it down to future generations is too strong to break.

Connect The Dots

Why the West will can afford to ignore the Russian Economy:


-the Russian economy is essentially an oil rich sheikdom excepts it drinks vodka, is snowbound, wears furry caps, and likes ballet and depressing novels about war-- unlike the Arabs.

-Oil accounts for over 90% of Russian exports.
And there a lot of other sheiks that want to sell oil including a reforming Iran.

-Fracking has opened up new oil in North America and has eliminated a Russian monopoly.
Fracking is The Killer Technology that may end Arab Terror, Venezuelan Chicanery, and Russian Bullying.

-Since Russian pipeline cut offs, Europe has opened up liquified natural gas terminals that can use world markets for supply eliminating the Russian pipeline monopoly.
Europe learned from Putin's Oil Embargoes.

-Russian population due to alcoholism is shrinking smaller than Bangladesh.
How would your business do if it had 40% alcohol absenteeism every Monday morning?

-Russia is less technologically advanced than Latvia.

-Outside of oil, Russia has less world trade than the tiny island of Hong Kong.

-Russian oil production is now exceeded by the United States.
As well as Canada.

- Scandinavian vodka and Turkish caviar will plug the other exports.
Add Iranian Oil.


The West can afford to ignore Russian Trade.
Boycotting Switzerland would be more painful.


It is no different than boycotting Iran and the results in Iran which are DEVASTATING: 40% Annual Inflation. Youth Unemployment of 80%. People fighting over a chicken. People freezing to death in Tehran.

I predict sanctions and boycotts would do the same to Moscow.
With time--up to 3-5 years depending on national stubbornness-- it will be enough to bring an Ayatollah or a Czar to the table, cap in hand: polite and respectful.


The biggest victim of the Russian Military will be the Russian Economy.

Lubumbashi in reply to Cleric

Oh please, educate yourself. The military value of nuclear weapons is next to useless. The only thing Russian can accomplish with its nuclear arsenal is self-destruction. Economics is what wins wars, and the Russian economy is based on natural resources, specifically selling them to other countries. I am not blind to the fact that Russia has a large number of educated and highly successful engineers and scientists, but once they have proven themselves, they emigrate to countries where their talent is recognised. The fault is not the Russian people's, but Russian leadership.

Lubumbashi in reply to Cleric

In 1941-45 Russia won it's part of the WWII with no small amount of help from the US, UK and others. Please note, that as far as the UK, Poland and France are concerned the war started in 1939, when Russia was in fact allied to Nazi Germany.

Oh and as for self-reliance, please remember that self-sufficiency is highly correlated with poverty.
Russian independence is not at stake here, Russian prosperity is

Looking at its human capital and natural resources, Russia ought to be one of the richest countries in the world, but it's not. The reason is the 70 wasted years between 1920 and 1990. when Russia tried to go it alone

Russia can prosper in the world, no-one doubts it, but not with a corrupt nationalistic kleptocracy in charge.

guest-siwinos in reply to observer48

Why do you have to make everything about Putin? Politicians and leaders come and go, the will of the people perseveres. The only thing that Russia wants is that the Western countries do not meddle with its internal affairs and do not invade it. Is that too much too ask? Russia does not have the capability to oppose the entire NATO's military potential. It's quite a small country despite its size. But its people will fight till the last drop of blood to drive away foreign invaders if it comes to it.

guest-siwinos in reply to observer48

You are again trying to turn this into an argument about Putin. Anyway, it is clear that you are racist against Russians, otherwise, you would not have made unfounded generalisations. The Western countries have always thought that the Russians are inferior to them, they have always tried to portray them as a herd of mindless serfs like you do. That is something that the Russians cannot put up with. Why do they need "friends" and "allies" who look down on them? They are too conscious of their identity. You are trying to portray Russia as an invader or an aggressor while history has demonstrated many times that Russia has always been the victim of different invasions (Mongol, Polish, French, German).

jouris in reply to guest-siejowo

The West, whether wisely or not, tried being friends with Russia after communism fell. But Mr Putin determined that he wanted to act like an enemy. You can fault the West for being slow to see that. But not for having finally figured it out.

Not your friend

Flight of capital does not necessarily negatively affect the economy. We should distinguish between direct investments, such as building of new factories in Russia by foreign companies, and speculative flows from foreign funds to the Russian stock market. Slow down or even stop of the former is a negative external shock which worsens economic situation and impacts the GDP growth. However, outflow of the latter leads only to wealth destruction of foreign pension and hedge funds, not directly affecting the real economy (through investments). In other words the analysis is not straightforward. As we remember, the capital outflow began long before the crisis in Ukraine, which suggests that the reasons are macroeconomic in nature and are not directly connected to sanctions or the Ukraine effect.

SONTRAN in reply to Not your friend

Harvard should invite you there to teach economics for their students.But you are actually A MORON rather than a talent.
If Russia does not need foreign capitals.It should not have set up stock market and Russian companies should not have listed on stock market.


What is most interesting is to watch the effect of capital fleeing the Russian economy.

Same as in China a lot of people in Moscow got filthy rich by the influx of capital from Western investors. Now, we see it flowing back as scared investors are collecting their funds as long as they can. What will happen to all the huge office buildings that are built in Moscow, who will occupy them, who will employ the capital's yuppies in the future?

Trust is the prerequisite for doing business especially with a foreign country. And in that regard Russia is just a total disappointment given the (new?) political stance.

Exbuster in reply to Cleric

The economic war was initiated in 1945 and Russia lost that patriotic struggle in the humiliation of 1991. You struggled, we knew you were wasting your time. Back for more?

guest-siwinos in reply to observer48

You do not know the first thing about Russia. Those who leave the country might do so for various reasons: they marry foreigners, find a job abroad. Political oppression hardly influences their decision to emigrate. You always use the same set of epithets and metaphors to spew your hatred against Russians, which makes your arguments sound trite and unconvincing.

Veniamin Nikolayev

Agreeing with the previous post, any significant economic decline - while having nothing to do with the anemic sanctions - will only solidify Putin's grip on power. Russia's recession begun a year before the crisis in Ukraine. The West handed Putin a perfect scapegoat. Did the sanctions against a handful of Russian bureaucrats push the Russian economy into a recession? Don't be ridiculous. But the Kremlin will absolutely use that as an excuse.

guest-siwinos in reply to observer48

Russia and the Soviet Union are absolutely different political entities which are not to be confused. The fact that you lived in the Soviet Union does not suddenly make you an expert in today's political landscape in Russia. And those Russian emigrants you claim to know must have left the country before the 1990s when most people did so for purely political reasons. After the collapse of the Soviet Union the economic factor was the driving force behind immigration to other countries. So I do not understand what you are trying to prove here.

SONTRAN in reply to Deendayal Lulla




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