Russia's economy slides into crisis
SEAN GALLUP/Getty Images
Many analysts — including me — have suggested that Vladimir Putin's Russian regime should pay an economic cost for the ongoing invasion of Crimea, not least to discourage further Russian expansionism into Eastern Europe. Yesterday's "referendum," in which 97 percent of those who took part voted to join Russia, does nothing to change that. After all, having Russian soldiers on the streets and pro-Russian mobs intimidating non-Russians hardly makes for a free and fair vote.
Yet already, the economic consequences of Russia's invasion of Crimea may be coming back to haunt Putin. Reuters reports that Russia's deputy economy minister Sergei Belyakov warned on Monday that the country's economy is in crisis. The Russian economy was already in a perilous state, having shrunk for two consecutive quarters. And now Russia's currency, the ruble, is weakening, causing expectations of growth in inflation. Russia's stock market has fallen significantly during the Ukraine crisis, down over 20 percent already this year.
Will continued economic weakness stop Russian expansionism? Perhaps. The threat to Russian business interests may motivate Russia's oligarchy to rein in Putin. But maybe the opposite happens. Viewed through an economic lens, Putin's takeover of Crimea seems like a diversionary tactic to bolster Putin's support with nationalist fervor while the previously strong Russian economy weakens. If the Russian economy continues to weaken, it's possible that Putin may become more desperate and reckless to maintain his regime's grasp on power.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
John Aziz is the economics and business correspondent at TheWeek.com. He is also an associate editor at Pieria.co.uk. Previously his work has appeared on Business Insider, Zero Hedge, and Noahpinion.
-
'Voters know Biden and Trump all too well'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Is the Gaza war tearing US university campuses apart?
Today's Big Question Protests at Columbia University, other institutions, pit free speech against student safety
By Joel Mathis, The Week US Published
-
DOJ settles with Nassar victims for $138M
Speed Read The settlement includes 139 sexual abuse victims of the former USA Gymnastics doctor
By Justin Klawans, The Week US Published
-
Israel proposes two-month pause in Gaza war in exchange for all Hamas hostages
Speed Read Deal doesn't include an agreement to end war, but might be 'the only path that could lead to a ceasefire', said US officials
By Harriet Marsden, The Week UK Published
-
Nato official warns of all-out war with Russia in next 20 years
Speed Read Civilians must prepare for life-changing conflict and mass mobilisation, says military chief
By Harriet Marsden, The Week UK Published
-
Rishi Sunak visits Kyiv to announce £2.5 billion in military support for Ukraine
Speed Read Surprise trip comes amid increased Russian bombardment and escalation of Middle East crisis
By Harriet Marsden, The Week UK Published
-
British warship repels 'largest Houthi attack to date' in the Red Sea
Speed read Western allies warn of military response to Iranian-backed Yemeni rebels if attacks on ships continue
By Richard Windsor, The Week UK Published
-
Israel preparing to flood Hamas tunnels with seawater
Speed Read IDF pumps could drive out terrorists but critics warn of danger to hostages and Gaza water supply
By Harriet Marsden, The Week UK Published
-
Houthi rebels claim Red Sea ship attacks
speed read Iran-backed Yemeni group vows to escalate aggression towards Israel-linked vessels in revenge for Gaza war
By Harriet Marsden, The Week UK Published
-
Israel plans next phase of Gaza war as first hostages released
Speed read After four-day ceasefire 'we will not stop' until destruction of Hamas, says Israel
By Harriet Marsden, The Week UK Published
-
Mob storms Russian airport 'looking for Jews'
Speed Read Plane from Israel surrounded by rioters chanting antisemitic slogans after landing in Russia's Dagestan region
By The Week UK Published