Economic Development of Russia
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US failing to push economic sanctions against Russia through EU allies

US failing to push economic sanctions against Russia through EU allies | Economic Development of Russia | Scoop.it
The new round of sanctions against Russia, which the EU and the US plan to unveil Monday, will not target the Russian economy. Washington said it won’t use economic sanctions without the EU also signing up to them.
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While Western countries are still planning to move ahead with further sanctions on Russia, this new round of sanctions will be of only minimal detriment to the former Soviet Republic. The United States, undeniably the most fervent in the push for sanctions, is already economically and politically separated from Russia, many of the EU states are directly connected through energy trading. If the EU were to place significantly tougher sanctions on Russia, they would be losing one of their major energy suppliers, creating significant blow back to EU nations. Even the U.S., despite its desire to impose tougher sanctions, knows that it would have little effect if they weren't backed by the EU. With this in mind, it is likely that Russia won't have to too great an economic decline should the sanctions be imposed.

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Carthage College economist Yuri Maltsev discusses pros and cons of Russian economy

Dr. Yuri Maltsev, professor of economics at Carthage College, discusses pros and cons associated with Russia's government-dominated economy. Maltsev offered ...
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Despite the widespread Russian belief that their country has become under the control of free market-bred oligarchs since the 1990s, more than 40 percent of the Russian economy is directly under state control. Furthermore, it has been speculated by top Russian economist Dr. Yuri Maltsev that many of these powerful oligarchs have either been imprisoned or relieved of their economic power. He further states that any remaining oligarchs with any amount of significant power have sworn direct allegiance to President Putin, essentially making the claim that the government has much greater economic control than is statistically publicized. This information contradicts the supposition that Russia has moved towards a free market state; rather, it shows that Russia can more appropriately classified as having an economy of statism, due to the widespread official and unofficial control.

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For Russia, Negatives Seem to Outweigh Positives of an Invasion

For Russia, Negatives Seem to Outweigh Positives of an Invasion | Economic Development of Russia | Scoop.it
The reasons for Vladimir V. Putin to refrain from further military adventurism make a long, tangled list.
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Despite numerous positive economic and political side effects of an invasion of eastern Ukraine, Russian president Vladimir Putin recognizes that such actions would have significantly more disastrous results. While control over eastern Ukraine would boost his popularity in Russia and their economy with new land and factories, it would require greater funds for public welfare and an occupation force. What's more, such actions would provoke greater economic sanctions and possibly severe military action from Western powers. Such an outcome would not only destabilize Russia, but the entire world of international trade. For these reasons, it is substantially obvious that such an action on the Russian Federation's behalf would only act as a significant detriment to further growth.

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Even Without Sanctions, Russia's Economy Is Looking Sicklier Than Ever

Even Without Sanctions, Russia's Economy Is Looking Sicklier Than Ever | Economic Development of Russia | Scoop.it
Russia's central bank says it's raising interest rates again to fight inflation. One analyst says it's to stem capital flight
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Regardless of the possibility of new economic sanctions, the Russian economy is in a tight spot. Supposedly concerned with significant inflation rates, the Russian central bank just raised the interest rate for the second time since March, from 7 percent to 7.5 percent. This increase means that businesses and consumers will be forced to pay a larger interest rate percentage on and future loans, greatly discouraging economic investment and expansion. To make matters worse, many economists are predicting the inflation rate to remain above 7 percent, meaning that the bank's increase in the interest rate will have few, if any, positive and far-reaching effect on the economy. These conditions indicate a tough road ahead for the Russian Federation, as political corruption and economic disagreement make it difficult for any mending policies to be put in place. 

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Russia action 'price worth paying'

Russia action 'price worth paying' | Economic Development of Russia | Scoop.it
William Hague says damage to the UK economy is a "price worth paying" for further sanctions against Russia.
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With the crisis in Crimea out of the way, and Russia being its new parent, many Western countries are fearful that Russia will continue in its attempts to bully and control other nation on its borders. In order to discourage the Russian Federation from keeping military forces stationed near the Ukraine's eastern border, the West has called for increased economic sanctions to be placed on the former Soviet state. While this may have some negative consequences on the economies of the West, it will certainly damage that of the Russian Federation, as their relatively-recent free market economy is dependent upon foreign trade for its sustainability. In order to maintain its economic growth, Russia will have to come to terms with its Western adversaries.

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Russia's bond market is Achilles Heel as showdown with West escalates - Telegraph.co.uk

Russia's bond market is Achilles Heel as showdown with West escalates - Telegraph.co.uk | Economic Development of Russia | Scoop.it
Telegraph.co.uk Russia's bond market is Achilles Heel as showdown with West escalates Telegraph.co.uk Lars Christensen from Danske Bank said Russia's economy is already in recession and may contract by as much as 4pc if there are fresh sanctions,...
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With capital outflows in Russia having already reached 65 billion U.S. dollars this year, it has been speculated that the Russian economy will suffer more now than it did in 2008, at the end of which its capital outflow reached a high point of $135 billion. In light of proposed new sanctions, it is entirely possible that Russia's economy will contract by as much as another 4 percent. Given these harsh projections, it is no surprise that the Russian bond and stock markets have experienced significant downturns. While having already declined by a significant percentage, the Russian stock market could crash by another 30 percent should further sanctions be put in place. However, should further conflict and sanctions be averted, the markets could supposedly rise by 5 percent. These statistics make it clear that Russia needs to focus on preventing further sanctions at all costs, or else face a significant market crash. 

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Storm Clouds Strike Russian Economy as S&P Cuts Debt Rating

Storm Clouds Strike Russian Economy as S&P Cuts Debt Rating | Economic Development of Russia | Scoop.it
Standard & Poor’s chopped Russia’s credit rating on Friday as analysts warned the Western European country is teetering on the brink of political and economic mayhem.
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In response to the recent economic deterioration of the Russian Federation, Standard and Poor's downgraded its credit rating from BBB to BBB-, indicating substantial economic and political decline. Furthermore, S&P has made it clear that Russia's credit rating will only decline further unless some remedies have been set in place within the next 2 years. This means that time is of the essence for Russian leaders to reshape their economic situation lest they deteriorate past the point of no return.

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Russian bear and Chinese dragon shake paws

Russian bear and Chinese dragon shake paws | Economic Development of Russia | Scoop.it
The Russian-Chinese cooperation has been gaining momentum in light of Western sanctions against Russia. China supported Russia, when Western countries launched an anti-Russian campaign. Now, the U.S. may come across a powerful...
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In spite of recently imposed and proposed sanctions, it has been widely believed the the Russian economy is all but doomed lest they cede to the requests of the West. However, not all economically powerful nations back the sanctions. China, the most significant industrial "economy of scale" has resisted the West's pressure to accept sanctions and has instead agreed to proposed Russian trading agreements for natural gas and agricultural development. With these new developments comes hope for the Russian economy, and with all these talks of impending destabilization, it could not have come at a better time. 

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Russia stares at recession as Ukraine crisis scars economy - Daily Times

Gulf Times Russia stares at recession as Ukraine crisis scars economy Daily Times MOSCOW: Russia looks increasingly likely to sink into recession in 2014 as the knock-on effects of its standoff with the West over Ukraine hurt an economy already...
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With an economy already crumbling due to problems with internal structural stability, it appears as though the Russian economy is about to plunge into a mid-2014 recession due to the struggle of economic sanctions from the West. With the first quarter of this year already showing 0.5 percent contraction in the Russian economy, it is highly probable that the next quarter will bring similar, if nor more disastrous, results. To make matters worse, the newly-proposed sanctions include bans on Russian energy exports, a state-run industry that is the backbone of the Russian economy. If these sanctions are to be officially imposed, there is a near certainty that Russia will experience one of its most substantial recessions since the 1990s. For this outcome not to come into fruition would require diplomatic improvements between the West and Russia, something that neither side appears to be working very hard at.

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