World Economy

Clinical Death of Russia?

Clinical Death  of Russia?Clinical Death  of Russia?

Aleksandr Auzan, Doctor of Science (Econ.) and head of Moscow Lomonosov University department of economics, gives his assessment of the current situation of the Russian economy. “We are witnessing a clinical death of the Russian economy. The economy’s heart, investments, is going to stop,” Auzan said, NewsNow reported. “The slowdown began in 2011, and it is no surprise for economists. Western sanctions and dropping oil prices have merely accelerated the process,” the scientist says. “For 50 years since 1965, the discovery of Russia’s huge oil reserves in Samotlor, offered Russia an easy ride with lavish oil revenues. Seven-eight years back, the economists who were working on drafting Russia’s strategy till 2020, were unanimous in saying, “The model whereby Russia is relying merely on the sales of raw materials (oil, gas, wood, minerals) is unproductive and must be changed–or the irreversible will happen.” I am convinced that the irreversible is going to happen soon,” the Russian economist says.