How will the price of oil affect Putin ?

[orangesunset]

BP announced that the price of oil os expected to stay at $50 to $60 per barrel for the next two years. How will this effect the Russian economy ? Will Putin be able to keep control ?

Right now Putin is talking tough, and this seems to be working for now. But will it keep on working for the next two years ?

 

[morgan_titan]

Putin is a modern day dictator - he'll be in power as long as he's alive. This is sort of the Russian way too, except for the period after Stalin died until Yeltsin. There's a reason Medvedev was PM, and that was only so Putin can wiggle around the Constitutional barriers put up. It's beautiful theatre - which Russia is good at!

The current oil prices will affect Russia's economy, but Putin will come out unscathed. In fact, it may fuel a situation where Putin can gain more control and do some really bad things.

 

[003]

Russia is already dribbling in a not so good economy. It's due to the sanctions imposed on them by some international political organisations. And this the drop of the oil price will surely be another big blow to Putin's country. It's not clear to me what Russia is fighting for. What would it rather have its people suffer and deprive it the possible comfort that awaits? Well, it's because of nationalism of which I admire them.

 

[sillylucy]

This will probably hit is economy hard, but he will in no way be effected that much. He probably has other sources of income and will bleed his own people dry before he has to change his quality of life.

 

[morgan_titan]

I think it's safe to say that Putin, and his oligarch cronies, have enough foreign capital to last them and their great-great-grandchildren for a while. The level of cronyism and corruption in Russia is insane. I wonder where their exit countries would be in case of things going haywire in Russia socially?

 

[xTinx]

Oil prices are currently on shaky ground, so I doubt Putin himself can keep calm and carry on. For now, he can only place his hopes on the successful assumption of control over Crimea and eventually exercising full authority over the oil that can be drilled there. Now, he's attacking Ukraine directly to fast track his goals.

 

[hawkie]

I think Putin has already fallen into a defensive stance and that's why he has been kicking things up trying to form more ties with China (more or less understandable) and North Korea (which no other country in the world, including China, wants to be much associated with). Right now he is still enjoying a high level of popularity in Russia, at least that's what the polls are showing, but I really wonder how sustainable that is if the price of oil stays at this level and their economy keeps sinking deeper.

 

[tournique]

Russia's clumsy economy will really have to suffer after this oil downfall.

 

[Onionman]

It's not the best situation for Putin. He needs stability to support his domestic agenda and a low oil price does not encourage stability. The economy is perhaps more diversified than it once was, but there is still a large reliance on natural resources.

 

[kestas57]

Putin himself doesn't care too much. The question is the reaction of the Russians themselves which will be hit economically because of the automatic slump of the Russian economy. I don't think that Putin will be gone anytime soon just because of economic turmoil however.

 

[haitch]

Unless the people of Russia take a stand against Putin, which is very unlikely in this modern day dictatorship, then I don't think that we will see him stepping down for a very long time. on the other hand if the conflict in Russia does continue and NATO do decide to take action then we will not see Putin stand down from internatiol pressure either.