Russians’ Anxiety Swells as Oil Prices Collapse
Food prices rose 20 percent last year, according to official statistics, but often Russians say their grocery tab is up by a third or more, thanks in part to sanctions Moscow slapped on Western food imports in retaliation for sanctions the West imposed over Ukraine.
.. Russia has around $360 billion in foreign currency reserves and some $120 billion in two rainy day funds, down from just under $160 billion a year ago. At current spending rates, however, the two funds are expected to last only 18 months. It might also sell significant stakes in state-run companies like the oil giant Rosneft or Sberbank, and it will not increase military spending.
.. Russian involvement in wars in Ukraine and Syria has swelled the general whirlpool of anxiety, with the possibility of a global war discussed on state-run television. Some analysts accuse the Kremlin of deliberately seeking overseas adventures to distract people from domestic economic woes.
.. “The Russian people got what they wanted, a czar ruling the country,” he said of Mr. Putin. “What we need is an effective manager, but what we got is the Olympics, soccer and war.”