This is a blog for use in both of my HIS 241 and HIS 242 Russian history survey courses at Northern Virginia Community College.

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30 December 2008

Russia's Economic Crisis

Just a quick note.
Read today in the news about the continuing devaluation of the Russian ruble and had read also recently about how the world economic crisis was going to end up affecting Russia. Since the country depends so much on the export of natural resources (oil and gas) for its foreign exchange balance, and with the collapse of prices for those commodities in the past six months as the world passes into a global recession, Russia is not going to be immune from the troubles, despite its huge cash reserves amassed over the past few years.

1 comment :

Anonymous said...

Not only the decline of the rouble in the short term but the decline of the population in the long term. Russia seems to be hoarding its cash reserves without spending the money on building up its infrastructure. It seems obvious that the price of oil will go back up but Russia is already having a hard time keep up oil production and a decline is inevitable.
KMH