On Key rates by the Central Bank of Russia.

Of course the 'geopolitical factors' took it's toll, but in the long run this part confirms earlier statements and independent research:


Low economic growth rates are largely caused by structural factors. Utilisation of production factors — labor force and commercially viable production capacities — is high. Labour productivity growth is sluggish. Due to the demographic trends labour force shortage will continue to affect economic growth in the long term. Along with structural factors, external political uncertainty has a negative impact on economic activity. Investment demand remains weak amid low business confidence, limited access to long-term financing in both international and domestic markets, and declining profits in the real sector. Besides, consumer activity is cooling. Economic slack in most countries that are Russia’s trading partners does not contribute to acceleration in economic growth. At the same time, persistently high oil prices support domestic economy.
It seems harsh, but yes, Russia is in budget terms a bit like those oil states in the Gulf. Without high prices for ressources, especially oil and gas it's economic model doesn't work.

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The Central Bank of the Russian Federation (Bank of Russia)

Press Service

12 Neglinnaya Street, Moscow, 107016 Russia; tel: +7 495 771-44-17, +7 495 771-46-69; fax: +7 495 924-92-16;
www.cbr.ru