Tuesday, 23 December 2014

Russia is heading for a 'full-fledged economic crisis' warns former finance minister, with the country's output expected to fall by 3.6%

Daily Mail
Russia's government has pushed the country into an economic crisis by not tackling its financial problems fast enough, former finance minister Alexei Kudrin has said.  His comments came as the central bank bailed out its first victim of the collapsing currency and authorities announced a tax on grain exports to protect domestic stocks. A poll of 11 economists also predicted that Russia's gross domestic product would fall 3.6 per cent next year. Russia has been hit by what Economy Minister Alexei Ulyukayev recently called a 'perfect storm' of plummeting oil prices, sanctions related to its military action in Ukraine, and a flight of investors' capital. A lack of structural reforms has compounded the problem, making the economy overwhelmingly dependent on oil revenues."

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