the 2014 invasion and annexation of Crimea. This controversial move is, by some, thought

to be an intentional distraction from Russia’s deep economic recession. The annexation of

Crimea, along with military action in Syria, has much of the Western world turning its

back on Russia. So we wanted to know, Is President Putin causing Russia’s economic recession?

Well, economic reports from late 2015 have shown that Russia’s economy has consistently

shrunk over the past three quarters. This current period is seeing a 4% drop compared

to last year’s figures. And earlier in the year, Russia saw its largest economic downturn

since the 2009 financial crisis. Despite being the 10th largest GDP in the world, Russia

has seen half the value of their currency disappear since mid-2014. Although the rapid

decline has since begun to show signs of stability, Russia has a long way to go before restoring

their economic might. But what is actually causing this deep recession?

Well, the international response to President Vladimir Putin’s territorial aggressions

was far from favorable. The US, UN, and EU saw the annexation of Crimea as an illegal

encroachment on Ukraine’s sovereignty, and imposed a series of sanctions on Russian trade,

business, and individuals. Among other industries, those sanctions targeted nationalized oil

companies, which constitute an enormous portion of the Russian economy. In response, Putin

imposed his own sanctions, preventing Western food from entering the country. Russia even

destroyed tons of cheese, fruit, bacon and other foods, instead of allowing them to go

to the country’s many impoverished residents.

But while Russia may have been able to avoid significant downturn dealing with sanctions

alone, geopolitical events have crippled their oil revenues even further. Over the past two

years, the US and Saudi Arabia have been competing for oil supremacy. In an attempt to prevent

the US from making a new form of drilling profitable, Saudi Arabia has been selling

its vast reserves for around $50 dollars a barrel. That’s down from about $100 dollars

a barrel in June 2014. Meanwhile, Russia is the largest producer of crude oil on earth,

and the second largest producer of dry natural gas. In 2013, Russia saw 68% of its export

economy dependent on oil.

Obviously, economic sanctions, coupled with a dramatic collapse in oil prices, has left

Russia with nowhere else to turn. This is further coupled with the fact that both militarily

and economically, Russia is unable to compete with the United States in the long run. In

the end, it seems that Vladimir Putin’s obstinance in the face of economic downturn

may just further Russia’s slow economic decline.

Another reason Russia might be in economic decline might be the country’s high level

of corruption, which benefits the elite but punishes the less wealthy. Find out more in

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