The Russian economy was forecasted to contract by 4.5% this year, and it's not the worst part of the crisis the oil-exporting country is facing.
Going Down with Oil
The Russian economy was forecasted to contract by 4.5% this year, and it's not the worst part of the crisis the oil-exporting country is facing. With oil prices spiraling downward for the past six months, coupled with the on-going war in east Ukraine triggering waves of sanctions from the West, Russia's ruble has seen one of the sharpest currency depreciations in recent memory, raising alarms about the government's ability to repay it's dollar-denominated foreign debt. To stop the vicious cycle of panic ruble selling, the authority could re-negotiate terms for maturing bonds, or simply put out hard restrictions on foreign exchange. But the inflation was running high before the crisis, even with the emergency measures it's a long shot to save the economy from major bleeding in the coming years.
本文收錄於英語島English Island 2015年1月號