Russia’s economic crash, driven by the plunging price of oil and tough Western sanctions, is prompting well-off Russian investors to abandon London’s property market. Money from super-wealthy Russian oligarchs, however, continues to flow into Britain.
President Putin has not disclosed his future strategic plans during the annual Q&A since to surprise international markets one should always have an ace up the sleeve, French economist Jacque Sapir told RT.
Despite, or because of, the fallout from the 2007 Great Recession, annual earnings between the richest Americans and everybody else have exploded to record levels. Meanwhile middle- and lower-class wealth growth remains stagnant.
The shortest day of the year is almost at hand. The longest night of worry for Russia’s economy is already upon us. Despite financial storm clouds which threaten international contagion, there is still hope.
The Russian currency remains volatile Wednesday after it suffered its own ‘Black Tuesday’ losing about 20 percent. The ruble strengthened to 61 rubles per 1 USD, before settling near 62 at market close in Moscow.
For the sake of the Russian economy, the Central Bank cannot continue its waiting game strategy for too long hoping that speculators give up before it does, says Mike Ingram, a market strategist at BGC Brokers in London.
The current ruble exchange rate does not correspond to the macroeconomic situation, Russia’s Economic Development Minister Aleksey Ulyukaev said, adding that market players now need a new set of guidelines.