The best way for Russia to avoid collapse is by making the EU implode first – by exacerbating the migration crisis and stoking Islamophobia
The Putin regime faces bankruptcy in 2017, when a large part of its foreign debt matures, and political turmoil may erupt sooner than that. The president’s popularity, which remains high, rests on a social compact requiring the government to deliver financial stability and a slowly but steadily rising standard of living. Western sanctions, coupled with the sharp decline in the price of oil, will force the regime to fail on both counts.Sponsored Ads
Russia’s budget deficit is running at 7% of GDP, and the government will have to cut it to 3% in order to prevent inflation from spiralling out of control. Russia’s social security fund is running out of money and has to be merged with the government’s infrastructure fund in order to be replenished. These and other developments will have a negative effect on living standards and opinions of the electorate before the parliamentary elections this autumn.