Russia After the Global Economic Crisis

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That bid to strengthen bilateral ties continues this week with Xi attending the forum as part of a three-day state visit to Russia, where he called President Vladimir Putin his "best friend. The meeting of the two prominent global powers comes as Russia's relations with the U.

Center for Strategic & International Studies

Their traditional economic models — for Russia the export of energy products and for China the export of goods — looks increasingly uncertain. Both Putin and Xi have vowed to fight protectionist policies, an accusation leveled at their U. Remarking on the trade relationship, Xi told RIA Novosti this week that trade between the two nations is "especially valuable given the current complex environment of sluggish global trade and investment and surging protectionism in the world.

Sign up for free newsletters and get more CNBC delivered to your inbox. Get this delivered to your inbox, and more info about our products and services. Privacy Policy. Of course, western sanctions — particularly restrictions on banks — have exacerbated the situation. All countries that rely heavily on energy exports have suffered, especially those, like Russia, that have failed to diversify their economies.

In a western democracy, an economic collapse on the scale experienced by Russia would have been extremely difficult to digest politically, as the global surge in populism demonstrates. Yet Putin has been able to remain firmly in control and, in all likelihood, will easily be able to engineer another landslide victory in the presidential election due in March Unfortunately, such disinformation is hardly a recipe for generating reform.

Where will future growth come from? If the world continues to move toward a low-carbon future, Russia will confront an inevitable choice: launch economic and political reforms or face continuing marginalisation, with or without western sanctions.

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Russia after the global economic crisis

The Russian government saw the global financial crisis as both a repudiation of western neoliberalism and as an ideal opportunity to promote its own international economic leadership. Russia's alternative vision encompasses multipolarity, financial nationalism and political illiberalism. These policies are symbiotic.

The state uses its control over financial flows to build and maintain political and economic power at home as well as to project its influence abroad, all justified with a strong dose of great power nationalism positioning Russia as the Eurasian pole in an emerging multipolar world order. However, the Kremlin is doomed to frustration in its quest to assert international economic leadership.

Russia Economy - GDP, Inflation, CPI and Interest Rate

The Russian government has the ability to shake up the existing international order but lacks the credibility, stability, or economic clout to lead the creation of a new one. This has troubling implications for the future of international economic cooperation and reform, as Russia's frustrations have increasingly turned it in reactive and confrontational directions.


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Russian PM Putin accuses US of causing global economic crisis

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