Russia close to economic collapse as oil price falls, experts predict

Russia is now lurching towards a major economic crisis, experts predicted today, following news that the price of oil had slumped to under $50 a barrel.

The collapse in the value of oil was likely to have several catastrophic consequences for Russia including a possible devaluation of the rouble and a severe drop in living standards next year, they warned.


With oil prices tumbling, and his own credibility at stake, Russia’s prime minister Vladimir Putin today insisted that the country’s economy was still robust.

Speaking at a meeting of the pro-Kremlin United Russia party, Putin told delegates in Moscow the country would survive the current global financial turmoil – which he blamed on the US.

But the Kremlin is acutely aware that any loss of confidence in the Russian economy could lead to a loss of confidence in Putin and his ally Dmitry Medvedev, who took over from Putin as Russia’s president in May.

Guardian