Russian economy grinding to a halt as Ukraine crisis continues

[Katzndogz]

The sanctions are doing nothing. Could sanctions work? Of course. Sanctions would hurt Europe more and we might see our own markets lose about a third. No one is willing to bite that apple. There is no chance of an economic conflict that would not hurt europe and us. No one is willing to adopt those losses to hurt Vladimir Putin. In many ways Russia as bad off as it is, is no where near as bad off as some EU members. Spain, Italy and Greece would crumble into chaos.

 

[Two Thumbs]

Russian economy grinding to a halt as Ukraine crisis takes heavy toll | Reuters

So Putin will soon be a most hated leader. I heard this morning that projections now show the Russian economy with 0% growth this year. More sanction will turn that into a negative. Middle class Russians will feel the pain of Putin's aggression.

from the link

In February Russia's gross domestic product eked out growth of just 0.3 percent year-on-year, up from a revised 0.1 percent in January, Russia's Deputy Economy Minister Andrei Klepach said.



It actually did better

not a win, russia is doing better now

sucks, but, woot there it is, thought you could read

 

[Two Thumbs]

Oh sorry, I forgot your RWers worship Putin....sorry about the Thread.

when your obama fluffing thread fails, say cons love putin, it's like calling them racist, but it's like new and stuff, and it prevents you from having to think, cuz we know you can't.

 

[edthecynic]

Russian economy grinding to a halt as Ukraine crisis takes heavy toll | Reuters

So Putin will soon be a most hated leader. I heard this morning that projections now show the Russian economy with 0% growth this year. More sanction will turn that into a negative. Middle class Russians will feel the pain of Putin's aggression.

The Ukrainians will be feeling the pain of joining the EU quicker I am sad to say.

May 1st the price of their gas is set to go up 50%. Part of the price of admission to the EU and backing by the IMF.

Driving them to get their gas from the good old USA making Russia's economic woes even worse!

Global Economic Outlook, Q1 2014: Russia » Deloitte University Press

Russia’s overreliance on hydrocarbons makes its growth heavily dependent on the fortunes of the global economy. Hydrocarbons account for nearly two-thirds of Russia’s exports and half of the government’s revenues. Of late, global economic growth has been slowing with emerging giants like China and India dipping to a lower growth trajectory. What has added to woes is a revival in oil in the United States due to the discovery of recoverable shale deposits. So, with oil prices declining by about 9 percent since Q1 2012, Russia’s GDP growth has declined from 4.8 percent to 1.2 percent during this period.

 

[EconChick]

The sanctions are doing nothing. Could sanctions work? Of course. Sanctions would hurt Europe more and we might see our own markets lose about a third. No one is willing to bite that apple. There is no chance of an economic conflict that would not hurt europe and us. No one is willing to adopt those losses to hurt Vladimir Putin. In many ways Russia as bad off as it is, is no where near as bad off as some EU members. Spain, Italy and Greece would crumble into chaos.

Will have to get back for a more detailed response, but wanted to say I agree with the gist of what you're saying, Katz, but my problem with folks' analysis of sanctions is they're failing to take ALL economic variables into account. Sanctions are but just one.

If you do a thorough economic analysis, including the impact of us exporting LNG for example(even in the future), and playing the many many cards we have, RU has a lot more to lose.

And yes, both sides would get hurt. But once he invaded Crimea, there wasn't going to BE anyone unscathed.

But in the end analysis, it's RU versus the West, and it's eithe some pain now or a lot of pain later for those of us on the opposite side of the table.

 

[jillian]

Oh...so I suppose Putin reached out
to Obama to discuss Spring fashion...Can't u Obamahaters at least allow for the possibility that our prez has been effective in imposing economic sanctions on Russia...and rallying European Allies to do so?

Tell us also about your deep seated theological belief in porcine aviation.

no... obama deranged loons should be the only ones allowed to say anything, right?

 

[EconChick]

Russian economy grinding to a halt as Ukraine crisis takes heavy toll | Reuters

So Putin will soon be a most hated leader. I heard this morning that projections now show the Russian economy with 0% growth this year. More sanction will turn that into a negative. Middle class Russians will feel the pain of Putin's aggression.

The Ukrainians will be feeling the pain of joining the EU quicker I am sad to say.

May 1st the price of their gas is set to go up 50%. Part of the price of admission to the EU and backing by the IMF.

Russia’s overreliance on hydrocarbons makes its growth heavily dependent on the fortunes of the global economy.


EXACTLY.

 

[R.C. Christian]

Worship Putin? Where do you get your political analysis....the comic strips? I don't worship Putin. Putin is a bully.


I do think he understands leadership far more than our characture of a President, though. But remember that being a leader does not automatically make one morally superior. There are leaders who are evil: Hitler, Saddam, etc...

He get's it from MSNBC or "My Soviet News Broadcasting Company".

 

[HenryBHough]

Want to see decline?

Check the ongoing fall of The U.S. Dollar against major world currencies. Not new; not fast; just slow, steady erosion.

 

[EconChick]

Worship Putin? Where do you get your political analysis....the comic strips? I don't worship Putin. Putin is a bully.


I do think he understands leadership far more than our characture of a President, though. But remember that being a leader does not automatically make one morally superior. There are leaders who are evil: Hitler, Saddam, etc...

He get's it from MSNBC or "My Soviet News Broadcasting Company".

LOL, hadn't heard that one yet, LMAO.

 

[JakeStarkey]

Russian economy grinding to a halt as Ukraine crisis takes heavy toll | Reuters

So Putin will soon be a most hated leader. I heard this morning that projections now show the Russian economy with 0% growth this year. More sanction will turn that into a negative. Middle class Russians will feel the pain of Putin's aggression.

And so will its western customers.

 

[EconChick]

Want to see decline?

Check the ongoing fall of The U.S. Dollar against major world currencies. Not new; not fast; just slow, steady erosion.

That's Keynsian idiots at work. Here and in Europe.

 

[Katzndogz]

Crimea is going to cost Russia both financially in having to cover large costs in Crimea as well as having damaged the Russian economy and possibly driving it into recession this year.

Firstly, what is Russia going to have to pump into Crimea?

"The Russian Ministry of Economic Development estimates that social subsidies alone in Crimea could require $2 billion a year. Demographics also present a problem – roughly 35% of Crimeans are over 60 years old compared to 19% on average across Russia. Their pensions and social security payments would need to be increased to match Russian averages. Overall, covering budget deficit and making social payments could take up to $4 billion/year, not including any long-term infrastructure investments, which are massive."

Russians On Putin's Crimea Gamble: What About Us? - Forbes

Putin has a pretty good plan for Crimea. The climate is mild thus the importance of the warm water port. Build some casinos and he's got it made. Steve Wynn can do for Crimea what he did for Macau. Our government has an interest in anti Russian and anti Putin propaganda it has to be taken with a grain of sand.

 

[HenryBHough]

Even worse, Kenyan Keynsians.

 

[EconChick]

Even worse, Kenyan Keynsians.

LOL. Touche!

 

[Moonglow]

Crimea is going to cost Russia both financially in having to cover large costs in Crimea as well as having damaged the Russian economy and possibly driving it into recession this year.

Firstly, what is Russia going to have to pump into Crimea?

"The Russian Ministry of Economic Development estimates that social subsidies alone in Crimea could require $2 billion a year. Demographics also present a problem – roughly 35% of Crimeans are over 60 years old compared to 19% on average across Russia. Their pensions and social security payments would need to be increased to match Russian averages. Overall, covering budget deficit and making social payments could take up to $4 billion/year, not including any long-term infrastructure investments, which are massive."

Russians On Putin's Crimea Gamble: What About Us? - Forbes

Putin has a pretty good plan for Crimea. The climate is mild thus the importance of the warm water port. Build some casinos and he's got it made. Steve Wynn can do for Crimea what he did for Macau. Our government has an interest in anti Russian and anti Putin propaganda it has to be taken with a grain of sand.

Too bad they ruined the Beluga fish...My caviar is tasteless now....