Russia’s economy is heading for a deep recession and Russian President Vladimir Putin has gone into damage control and along the way has blamed Russia’s issues on “external” forces.
Speaking at an end of the year press conference, that went for three hours, President Putin said Russia’s economy was in crisis because of western sanctions, big slides in oil prices and a free-falling ruble. See the video for more on that.
So what does this all mean for everyday Russians?
The country’s falling rouble and runaway inflation has already seen frightened Russians line up to exchange their devaluing currency for dollars and banks have put in restrictions on how much can be swapped.
“Russian shopkeepers have started to re-price their goods daily. Less than two weeks ago one dollar could be bought with 52 roubles; on December 16th between 70 and 80 were needed,” wrote The Economist in an article headlined: Things Could Get Much Worse For Russia.
“Shops defending their dollar income need a price rise of 50 percent to offset this. Russian workers’ pay will be cut massively in real terms”.
Appears 2015 is going to be a difficult one for regular Russians.