Russia’s economy is failing, but that gives it a chance to reform

Since undergoing a near decade-long depression in the 1990s, the prolonged bull market in oil prices driven by a rapid expansion of demand for oil in developing countries (most notably China) enabled Russia to post a decade of impressive economic results.

But a prolonged decline in oil prices threatens to reverse many of these gains. Even before prices started to fall, the economy was slowing as many in Russia sensed the need for a new model of economic development that was less dependent on oil.

• Primary Source

ESO: Background information: State of the Union Speech, December 2014 http://www.europeansources.info/record/crimea-ukraine-and-the-west-the-highlights-of-putins-annual-speech/

ESO: Background information: Russia expecting to sink into recession http://www.europeansources.info/record/russia-expecting-to-sink-into-recession/

ECFR: Commentary, 10.12.14: No good economic options for Putin http://www.ecfr.eu/article/commentary_no_good_economic_options_for_putin377

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