Kalyeena Markortoff writes at CNBC:
Data released Monday shows Russia’s economy “worryingly” deteriorated at the end of last year with oil prices in a tailspin only bolstering the odds of a second year of recession for Moscow, an analyst has told CNBC.
Russia’s state statistics agency, Rosstat, reported preliminary figures Monday that showed its gross domestic product contracted by 3.7 percent in 2015, much worse than the 0.6 percent growth tracked in 2014 but roughly in line with forecasts.
Billionaires Hear Russia’s Outlook at Davos
Is it All About Oil?
Russia’s vast hydrocarbon riches, and its extensive pipeline network connecting it to Europe have created an economy very dependent on oil and gas.
“Russia is a riddle wrapped in a mystery inside an enigma.” – Winston Churchill
“Construction of the first gas pipeline system was started during the 1960s, at the height of the Cold War, and for all those years, from the 1960s until this day, Russia has been fulfilling its contract obligations in a very consistent and reliable way, regardless of the political situation.” – Vladimir Putin
“The Russians are turning east to the Chinese – to the Europeans’ surprise. It always seemed to me that the relationship between Russia and China would shift from being based in Marx and Lenin to being based in oil and gas.” – Daniel Yergin