Friends, the ruble is somewhat recovering, seemingly Russia is also slowly but surely coming back …. could the agonizing Ukraine debacle, the reuniting with Crimea, the bloody tensions of the past year and the sanctions, have had a reverse effect than anticipated?
Might they all have been grist for the mill that ground down …. and in an unexpected upturn is becoming the early dawn of a multipolar world?
Check what NEWSWEEK has to say. S.
And keep your eye on Russia Insider -- which seems to be first with the latest analyses these days.
Published on Russia Insider News (http://russia-insider.com)
Is Russia's "Bullet Proof" Economy Ready to Blast Off?
Watching the tide of foreign policy, influence, and business turn concerning Russia, it’s a rewarding experience for all the moderates of the world. Bill Powell at Newsweek assures the journalistic faithful of Earth there’s even hope for mainstream media today. Despite US and EU sanctions aimed at crippling the Russian economy, Vladimir Putin’s economic endeavors of late have apparently saved the Russian nation’s day.
The Newsweek article, “What Sanctions? The Russian Economy Is Growing Again,” is symbolic of a break in the negative trend toward Russia in many ways. Powell takes something of a leap of faith and credibility in outlining how recent detente has "not exactly what the West was hoping for." Against what seemed like insurmountable economic odds, Putin’s ruble has rebounded, the stock market has out performed most competing ones, foreign exchange reserves are up, and the Russian government’s revenue has even exceeded expectations.
Russia May Be Bulletproof Economically
While crude oil and energy prices have hit Russia companies hard, they’ve empowered Russia industry to some of the highest profits in recent history. This and other “unexpected” stimulus as a secondary result of sanctions, spell a kind of policy disaster in Washington, London, and Brussels.The meat of this story from Newsweek can be found in the MICEX index, as well as on the micro level with companies like steelmaker Severstal (New Renault-Nissan deal) . For those unfamiliar with heavy industry, steel for auto makers and other markets depend, price wise, on the costs of energy used to produce. When I was at Nucor Steel in America, other than the costs of scrap and other raw materials, the electricity to power steelmaking was enormous, critical, a make-or-break commodity. The long and short, in competitive manufacturing price opens or closes markets. The dive in energy costs, combined with other cost/revenue benefits Powell describes, have helped Putin’s finance ministers’ make a fiscal shift toward growth.