The latest economic forecast from the world's biggest country is not good. Russia is posting anemic economic figures on par with many countries in the Eurozone. Russia's economy grew by just 1.1% in the first quarter in comparison to the 7% p.a. it experienced during the oil/credit boom of 2000-08. Russia experiences many structural and institutional problems such as corruption on a massive scale, over reliance on oil and gas not to mention ethnic and political tensions. Low outside investment is a knock on from its structural problems.
Its economy is expected to grow by just over 2% this year. Oil has dropped below $100 on the world market.
Russia’s Economy Could Be Next Big Underperformer
Putin is coming under pressure at home as his popularity wanes.
Putin’s Popularity Wanes as Russia’s Boom Ends
Also the two main projects of Skolkovo (whom Kebabs Lenihan was involved in) and Rusnano which sought to propel Russia's economy into the high tech nanotechnology are in serious trouble as Putin initiates a power grab under the cover of 'fighting corruption'.
Power Grab Trumps Nanotechnology in Putin
With these latest developments it does appear the Putin is repeating the same mistakes that Brezhnev did with the USSR from the late 1960s onwards.