November of last year was thought to be the end of Russian woes when it came to the economy. However, the recent oil price crash has once again thrown the country in an economic struggle. A statement by Capital Economics outlines that Russian’s economy will grow by only 0.5% this year which is well below the median of analysts’ forecasts.
Russia has a big reliance on natural resources with oil being one of its trump cards. Current prices of crude oil however stand at only $34.27 per barrel. The price of oil has fallen by over 70% since 2014. In January it was reported that Russia could be cutting its exporting by over 6%.
Despite all this Russia has largely managed to stabilize the ruble after the 2014 sanctions. President Vladimir Putin has also taken measures by attending a meeting on 1st January to discuss privatization and stabilize state budgets.