"Today it is clear that the crisis is spreading, unfortunately from the financial sector into the sectors of the real economy," Russian President Dmitry Medvedev admitted on Nov. 18. Full Story »
Posted by Peter L. Combs
All three articles starting with Business Week did a great job outlining the economic abyss facing Russia with the falling oil market. Good insights on the causes of the collapsing Ruble.
This week President Dmitry Medvedev conceded that the crisis was spreading to the real economy.
A revelaing quote from Medvedev as the Russians are not known for forthright admissions of failure or weakness. THings must be very bad or thought to be getting much worse.
The collapse of oil prices while a boon for most, might be a crippler for the current Russian leadership. The motivation for Putin's desperation, starting months ago, on oil and controlling crude is now crystal clear. The Russian economy is and has been much weaker than anyone imagined.