Thursday, January 21, 2016

Oil price and Russian politics: a history

http://www.economist.com/blogs/graphicdetail/2016/01/red-and-black


Over the last two years, Russia has stepped up its aggressive stance abroad. The invasion of eastern Ukraine and annexation of Crimea took place when the price of oil was still over $100 a barrel. But as the oil price fell, Mr Putin did not become any friendlier to the West nor to its neighbours. Indeed, he offered the war in Ukraine and patriotic euphoria as a compensation for the falling oil prices and lack of economic growth. September 2015 saw Russia flex its military muscle further still, this time in Syria, its first Middle Eastern intervention in decades. To date it continues to carry out air strikes there in support of its long-time ally, embattled President Bashar Assad, against anti-government rebel targets (and to a lesser extent Islamic State). Russia's presence in the oil-rich region soon tested the limits of its already strained international relations after Turkey shot down one of its fighter jets in late November.