Could the Russian Economy be on the Verge of Collapse?

Experts in the economy suggest that Russia could be in serious trouble. Ten months ago, before anyone ever imagined that the president, Vladimir Putin, might begin to stir up unrest within the eastern end of Ukraine, or invade Crimea, an individual known as the oligarch (a term which means business magnate), expressed that he was feeling a significant deal of concern in regard to Russian’s economic standing.

Experts in the economy suggest that Russia could be in serious trouble. Ten months ago, before anyone ever imagined that the president, Vladimir Putin, might begin to stir up unrest within the eastern end of Ukraine, or invade Crimea, an individual known as the oligarch (a term which means business magnate), expressed that he was feeling a significant deal of concern in regard to Russian’s economic standing.

When asked about whether the economy may be able to continue with a healthy progression in the coming years, the oligarch noted that the economy is currently so unstable it may not survive if it continues to deteriorate at the current rate. The biggest problem, he suggested, was that Russia does not create, or ‘make anything’, itself, as a nation.

Attorneys have never been Busier

According to Edward Mermelstein, a well-known attorney who works on a regular basis with various affluent Russian clients, many individuals are currently looking to do business and buy real estate in the US, as though attempting to escape the sinking economic ship that Russia has become. Mermelstein told news networks that his firm has never been busier, and they are receiving calls from a huge amount of Russians looking to relocate their entire family. Many are concerned about the issues that may be raised with dual citizenship and children that have been born outside of Russia.

Though the Russian economy had already been suffering from a serious dependence on high oil prices, an unhealthy pension system, and a corrosive inflation, the latest round of sanctions have revealed that matters are only growing worse with time. Over the past year, according to Russians who live in the surrounding regions of Moscow, the prices for essential items and food have begun to rise astronomically.

The Impact on Putin

Despite the obvious issues, and while much of the Western world continues to criticize the aggressive actions of Russia within the Ukraine, Putin’s ratings continue to stay at all-time highs. Eighty percent of the population supports him despite his terrible leadership and his horrendous laws forbidding all sorts of freedom that people enjoy in America and most of Europe. But these people that support him may be only doing so out of fear of what may happen if they publically denounce him.

The news in Russia is controlled and conveyed via the state. Most of the older generation do not use the Internet; all of their information is received by what the state wants them to see and hear.

Currently, Russians who read state-owned newspapers and watch television shows on state-owned channels, are being led to believe that the recent agricultural ban is a positive thing for the economy. This is particularly the case of Russian farmers, who did not have the opportunity to compete with prices before the ban. Obviously, channels that are not owned by the state have been reporting the news quite differently, showing just how detrimental the ban could be to Russia’s already failing economy.

EU Concerns

It is also expected to cause significant damage to the European Union economy. Countries within the bloc are standing to lose anywhere up to twelve billion dollars’ worth of economic growth every year, due to discontinued business with Russian markets.