MOSCOW - The situation in Russia is not just bad, but downright ugly. The main reason for the poor state of the Russian economy is the lack of an effective system for protecting property rights. The gradual dismantling of state institutions led first to a decline in investments, then to a sharp drop beginning in 2013, and finally to massive capital flight, with economic growth slowing to a halt by mid-2014.
The number of Russians now living below the poverty line is increasing in tandem with the number of Russian air strikes in Syria. Moscow is financing its military buildup and operations through cuts to the already woefully underfunded sectors of education, health care and infrastructure.
Browder was the largest foreign investor in Russia until 2005, when he became blacklisted from Russia as a "threat to national security." He has since emerged as one of Putin's most strident critics, and a prominent human rights activist.
Is the Russian Ruble becoming financial rubble as consequence of targeting by the U.S. and its allies? The dramatic fall in oil prices and commensurate drop in the Russian currency, is this coincidental to broader global economic trends or an orchestrated assault?
Nina Krushcheva, a professor of international affairs at The New School, said she’s not sure that Putin’s handling of the
Oil traded around $54 a barrel in New York on Tuesday, after free-falling from nearly $100 a barrel in August. Russia is
President Obama detailed the new sanctions the U.S. will be imposing against Russia.
The Russian economy may not be able to finance the Kremlin's ambitions in Eastern Europe for much longer because the country's oil and gas output is no longer a strong support of growth.