Oil and the Economic Crisis in Russia

Author(s): Philip Hanson
Editor(s): Matthias Neumann, Robert Orttung, Jeronim Perovic, Heiko Pleines, Hans-Henning Schröder
Series: Russian Analytical Digest (RAD)
Issue: 54
Pages: 2-4
Publisher(s): Center for Security Studies (CSS), ETH Zurich; Research Centre for East European Studies, University of Bremen
Publication Year: 2009

For better or worse, the Russian economy is heavily dependent on oil prices, particularly in terms of public finances, export revenue, and ability to purchase imports. The price of oil serves as an important signal for foreign capital, which has fled the country this year. An oil price in the $40 to $60 range would likely lead to the survival of economic Putinism, while a lower price would put much greater strain on the system, with unpredictable consequences.

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