Wednesday, 19 November 2014

Sanctions have an impact on the views around President Putin

In the last few months, the Russian rouble has lost 30% of its dollar value. This is directly linked to the sanctions the Western countries have put in place against Russia´s economic and financial interests. And on top of it, there is a strong fall in the price of oil, which is a key export commodity in Russia. 
All of this bites and cannot be immediately addressed by alternative ties with China and other economies. Such ties take time to produce effects. Russia is confronted with short-term challenges. It is true they have a huge sovereign fund. That gives the leadership some space. But is it enough? One start getting reports of divergent approaches within the leadership. These needs to be further investigated. 

No comments: