RUSSIAN CRISIS• Aastha Shanker

• Sneha Singh

• Nishant Bangar

• Ravi Bhojani

• Deshna Jain

• Suyash Arjyal

• Simon

• Abhishek Dongle

Phases of Russia

• Russia during Soviet Union

• Russia after Soviet Union (1991-1998)

• 1998 Financial Crisis

• Russia under Putin

• Russian Crisis - 2014

Russia after Soviet Union (1991-

1998)

• Shock Therapy

• Liberalization

• Stabilization

• Privatization

Price Variations in Privatization

(1994-1995)

Companies Auction Price by

GOVT.

(Mil. USD)

At Russian Stock Market

Prices

(Mil. USD)

Gazprom (natural gas) 250 40483

Unified Energy Services

(electricity)

957 17977

Lukoil (oil) 704 15839

Rostelecom (telecom) 464 4172

Yuganskneftegaz (oil) 80 1656

Surgutneftegaz (oil) 79 6069

1998 Financial Crisis

• Currency Crisis

Imports > Exports.

Rouble devalued by government.

Russia under Putin

• GDP Growth Rate- 6-7% a year

• People’s income grew at 15% a

year

• Tax Reform- personal income tax

was decreased from 305 to flat

13% in 2001

• Renationalization and Corruption

Russian Crisis 2014

MAJOR REASONS

Fall in Oil Prices

Sanctions

Major Reason

• Fall In Oil Prices

- from $100/barrel in June 2014 to less than $50/barrel in Jan 2015

- reasons

decrease in demand

shale oil production in US

OPEC countries reluctant to decrease the price

Major Reasons

• Economic Sanctions

- What are these sanctions?

- Why such sanctions?

- Why Russia invaded Ukraine?

- What is Crimea?

- Why Crimea?

How Bad Is The Situation?

• Decrease in trust in the currency

• Around $100bn debt to mature in 2015

• Declining foreign reserves

• High inflation – 11%

• Rating deteriorated from BBB to BBB(-)

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