hipeter924
Not a zombie yet
http://online.wsj.com/articles/russ...get-spending-finance-minister-says-1414158145MOSCOW—Russia’s economy and budget may suffer if low oil prices and Western sanctions persist for some time, government ministers warned Friday.
In the government’s clearest acknowledgment so far of the pain Western sanctions and lower oil prices have inflicted on the economy, Russian Finance Minister Anton Siluanov said the government may need to cut its budget spending for the next three years. Economy Minister Alexei Ulyukayev, meanwhile, said if the ruble continues to weaken, the economy may contract next year.
Russia’s economy is suffering from falling oil prices, as oil revenue makes up about half of the state budget revenue, while the sanctions imposed by the West in response to Moscow’s policy toward Ukraine have almost shut the global financial markets to Russian companies.
On one hand, the sanctions coupled with lower oil prices seem to be hurting Russia, which will limit their ability to spend as large sums on their military, and make further incursions beyond Ukraine more difficult:
Finance minister warns Russia can t afford military spending plan Reuters
On the other hand, it is doubtful that it will sway Putin, considering that Russians will just blame the west, and it just seems to strengthen him politically at home:
Putin says sanctions against Russia won t work SBS NewsPutin has accused the US of trying to cast Russia as a danger to the rest of the world and forcing its allies to impose sanctions against Moscow over the Ukrainian crisis.