Publication

This paper reviews how Russia has integrated into the global economy since around the year 2000 and the implications of the country’s economic crisis that developed following the West’s imposition of sanctions and the decline in global oil prices in 2014. The author argues that Russia’s integration model revolved around three main channels: 1) the export of natural resources and a national system of redistribution of export revenues; 2) increases in the size of the country’s financial sector, as well as how this boosted domestic consumption and demand; and 3) the offshore integration of Russian capital into global capital markets. She then outlines how the crisis is having a negative impact on all three channels, reviews how the Russian authorities have responded to the crisis and outlines four scenarios of what might happen to the country’s economy in the future.