Publication

This paper discusses the economic difficulties Russia is facing as a result of falling investment, capital flight, sanctions, falling energy prices, rising corporate debt as well as growing budget pressures. The author then examines Russia’s capacity to use its large reserves and sovereign wealth funds to mitigate its bleak economic situation. Finally, she argues that although federal finances may be salvaged, Russia's biggest problem lies in its regions, where sub-national governments face rapidly rising debts and the possibility of bankruptcy in the near future.