Russia: The Curse Of $50 A Barrel

Why steep oil prices could prove catastrophic for the country’s economy

With crude prices hovering around $50 a barrel, Russia, the world’s second-largest producer of oil after Saudi Arabia, is raking in petrodollars. This year oil exports are forecast to earn Russia some $90 billion, up from $14.5 billion in 1998. With so much hard currency pouring in, and oil prices way above historical averages, shouldn’t economists be in a cheerful mood about Russia’s economy? Maybe so. But it often seems that the higher oil prices go, the louder the cries of doom and gloom