Economist: Crimea has accelerated the economic downfall of Russia

A Russian economic expert Natalia Zubarevich believes that the annexation of Crimea has not caused the crisis in the Russian economy but has greatly accelerated the economic downfall.

“We must understand that the annexation of Crimea has not caused this, the Crimea has only speed up the process,” said Zubarevich.

According to her, the economic crisis in Russia began in 2013 and was associated with the collapse of the commodity economy. “In simple words, imagine: the price of oil is constantly growing, much money is concentrated in the economy; at the same time we do not improve our institutions, there are a lot of barriers to business, law-enforcers want to eat more and more, the State increasingly wants to regulate the economy, the state corporations are investing less and less effectively. But while the oil price is rising the economy is balanced. When the oil price stops even at $110 per barrel, and the barriers continue to grow, the economy stops too. Our economy stopped growing nearly at the end of 2012,” added the expert.

“Then this internal crisis was aggravated by the external factors: the international sanctions caused by the annexation of the Crimea, fall in oil prices and other components of the Russian export: aluminium, copper, nickel, iron ore and coal. The new crisis has begun as internal. The worst words I have already learned to pronounce: this crisis is a long-time one. We do not understand where the levers of the economic growth are,” concluded the economist.

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