Russia: Dependence on Oil Could Hurt Growth

News that the GDP grew a healthy 6.7 percent in 2006 met with as much anxiety as cheer among analysts, who said the economy got lucky last year with the oil price but is not diverse enough to stay ahead if that luck runs out next year.

Natalya Orlova, chief economist at Alfa Bank, said the sensitivity to oil prices was intensifying. “While the prices were high, it was not such a concern. But if they continue falling as they have been, it will affect every industry that depends on consumption,” including everything from finance to food, she said.
Moscow Times