The Russian economy (catch all)

[Firn]

Putin Clans Gridlocked Over Arrest as Sanctions Bite is a rather dramatic title but it meshes well with earlier papers and reports like that NYT article or comments by the current or former finance ministers.

When Putin came to power at the end of 1999, state companies accounted for about 30 percent of the economy, according to BNP Paribas SA. (BNP) Now the share is more than half.

Unlike Putin’s first two terms as president, when Medvedev and other “economic rationalists” had more freedom and growth averaged 7 percent, this cabinet is dominated by “statists” who want to expand the state’s role in the economy, according to Masha Lipman, an independent political analyst in Moscow.

“When there’s a clash between economic efficiency and rationalism and control and sovereignty, Putin always opts for the latter,” Lipman said. “The desire of the statists to be fully in charge has intensified. This trend has become irreversible. Medvedev is at risk and removing him as premier would take away the last defense of the rationalists.”

Foreign businesses are still investing but far less so then before. The damage inflicted on Russia is certainly increasing, but takes time. Worst are perhaps the wounds caused by it's government itself.