Posts Tagged ‘economy


Putin : rationing could come back “in a blink of an eye”

Russia’s economic growth is not granted and the situation could easily get back where it was at the end of the Soviet era according to Russian Prime Minister Vladimir Putin. He warned on Monday that political steps in the wrong direction could throw Russia back to the volatile 1980s-1990s.

Putin brushed off criticism of his tandem with President Dmitry Medvedev in an interview with three national TV channels seven weeks before parliamentary elections scheduled for December 4.

“I would caution against saying that things cannot get worse. If we take two or three steps in the wrong direction, everything that happened then [in 1980s-1990s] could return in the blink of an eye,” Putin said.

The prime minister described the situation in Russia at the end of the 1980s as disastrous and cited a popular joke to stress his point.

“For instance: some people invite their friends to come over for a visit. When they arrive, the hosts ask, ‘Would you like to wash your hands with soap?’ They say that they do. The hosts reply, ‘Then you’ll be having your tea without sugar.’ The idea is that one could not afford to have both. People could only get the essentials – basic food products. There was rationing for everything, to say nothing of the monopoly in ideology and politics,” Putin said.

In Putin’s opinion, the wrong steps taken by the Russian leadership at the time led to the downfall and collapse of the country and created the circumstances that were behind the country’s dissolution.

“It was in this way that we threw out the baby with the bath water – the dirty water of an inadequate political system and an inefficient economy. We allowed the country to collapse. This was also a time when people said that things could not get any worse,” Putin said.

“But then came the 1990s: a total collapse of the social sphere, when we saw not only single enterprises but entire industries grind to a halt, along with delays in pensions, all kinds of benefits, military pensions and salaries (which were delayed for months), and rampant crime. We truly came close to a civil war. We shed blood in the Caucasus, where we sent air power, heavy equipment and tanks. We are still dealing with the problems that remain there – crime and terrorism – but thank God, the situation has changed.”

Putin said that elements of stability in the political sphere were of vital importance for Russia which has been emerging from a deep political and economic crisis for the last two decades.

Putin and Medvedev have backed one another to switch roles after 2012 presidential elections. Medvedev proposed Putin for president at the United Russia congress in late September, saying he was ready to serve as prime minister in case of Putin’s victory.


Putin asks Russian banks to help the economy to recover

Vladimir Putin made a very important speech on monday about the global crisis. As usual, western media -which go crazy whenever Obama talks about his new puppy- barely mentioned it. It seems to me that Putin is of interest only when he slaughters civilians or scares the hell out of US government.

So on Monday, Putin talked to the country’s top bankers to ask them to inject in the coming weeks more than $16 billion into Russian economy.

Why is it so interesting? For two reasons. First it shows to thhe usual doubters that Putin’s invisible hand over every single thing in Russia is a myth. If he could had forced bankers to pay, why would he have bothered to call a press conference?

Second point. And unfortunately the most important and scary. Russian economy’s situation is not doing well at all. After almost a decade of constant growth, Putin is experimenting his first recession.

Russian economy had very few chances to be doing well in this economy. The country’s growth has been fueled for years by its basic elements production. With today’s prices (even if oil seems to be up again), the situation could get worst for Russia.

We’ll now see if Putin’s wishes turn out to be fulfilled…


How Putin saved Russia’s oligarchs’ *****

Once almighty and arrogant, Russian oligarchs have all learnt a bit of humility these past months.

Despite their visible  wealth, their huge industrial empires, mostly built on natural ressources, were not ready to face the economic global crisis.

Strangled by gigantic debts, Russian oligarchs were more thhan any other investors in the world massively struck by the liquidity shortage and were unable to refinance their debts.

Earlier this winter, most of their glorious holdings (which were considered in Russia as the milestones of new Russian prosperity) have come very close to a full collapse.

Once almighty and even scared by senior government officials, the most prominent Russian businessmen had no other choice than to come and beg for some cash to Vladimir Putin.

Britain Rich Russians' RefugeEveryone in Moscow has heard about these night time stories at the Kremlin were guys like Roman Abramovich, Oleg Deripaska or Vladimir Potanin were queuing for hours waiting for a few minutes meeting with Putin or Igor Sechin.

Putin has built these men and he had the opportunity to crushed them the same way he crushed Khodorkovsky. Why did he decide to finally save their ***** and pay for such an expensive bailout plan?

The most obvious reason is that Putin, as Obama in the US, did not want to see a negative domino effect throughout Russian economy (keep in mind that all started when the US government decided not to support Lehmann Brothers!!!).

That makes a lot of sense and was probably a vital move for the sake of Russian economy.

But I also believe that Putin saved a little more than the half dozen billionaires he once created. Abramovich’s, Deripaska’s or Potanin’s empires are part of Putin’s great ambition of hidden nationalisation of Russia’s natural ressources.

And he is not about to give up Russia’s natural ressources as he perfectly sees that the 21st century’s strugles will be about nothing else but it!!!