While it’s true that the nationalist fervor in the wake of the Ukraine crisis have increased Vladimir Putin’s approval ratings, it is doubtful that will last. The May holidays—a big deal in Russia—are coming up and many Russians will have to alter their travel plans. Others will find that their credit cards don’t work. Foreign adventures become decidedly less attractive when they inhibit the ability to enjoy your life.
When Russians arrive back home, they will find things only getting worse. The Russian economy is expected to fall into recession this quarter and Putin’s continued adventures will only get more expensive. Before long, imported goods will become scarce and social payments will need to be cut. Russians will begin to remember what the Soviet Union was really like.
In the years to come, decreased gas exports to Europe and a softening market for oil could cost the Russian economy as much as $100 billion annually—roughly 5% of GDP. Putin promised a new stronger Russia, respected throughout the world. Now he is delivering an impoverished pariah state.
As strange as it may seem, Vladimir Putin, the bare-chested, horse riding tiger hunter, is about to be taken down by a bunch of accountants.
As strange as it may seem, Vladimir Putin, the bare-chested, horse riding tiger hunter, is about to be taken down by a bunch of accountants.
