The Russian economy has been in recession for nearly two years now, with GDP growth shrinking by 3.7 percent in 2015. However, as the recession continues and persistent low oil prices cut government revenues to the bone, military spending has remained almost immune to cuts, and the country has undertaken expensive foreign military interventions in Ukraine and Syria. The Cipher Brief asks Christopher Chivvis, associate director of the RAND Corporation’s International Security and Defense Policy Center, to explain this behavior.
The Russian economy has been in recession for over 18 months now. Could you begin by laying out the sources of this downturn, and the effect it has had on the Russian budget, and the effect on ordinary Russians?
The Russian economy faces a triple whammy among Ukraine sanctions, low oil prices, and an overall poor business climate. These challenges compound one another, and capital flight continues…
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