Can Oil Sanctions Push Russian Economy Into Recession?
"It [Russia] is facing a lower price for oil. It is confronting a rising Ruble. In a diverse economy, you could take advantage of such circumstances, but Russia doesn't have a diverse economy and it won't be able to," says Will Pomeranz.
Will Pomeranz joins “Bloomberg Surveillance" to look at whether or not the Russian economy can be pushed into recession by sanctions from the U.S. and Europe and the fall in oil prices.
“It [Russia] is facing a lower price for oil. It is confronting a rising Ruble. In a diverse economy, you could take advantage of such circumstances, but Russia doesn't have a diverse economy and it won't be able to...Therefore it has to make some very tough choices as it faces the problem of declining oil revenues, increased inflation, and low growth; if not actual recession," says Will Pomeranz.
He also comments that, "this conflict began with trade. It began with the crisis over the EU and the Ukraine deciding to create a free trade zone together. If we are going to get to the root of this crisis that that trade agreement also has to be addressed."
Contributor
William E. Pomeranz
William Pomeranz, the Director of the Wilson Center’s Kennan Institute, is an expert guide to the complexities of political and economic developments in Russia, particularly through the lens of law. He leverages extensive, hands-on experience in international and Russian jurisprudence to address a wide range of legal issues, from the development of Russia’s Constitution to human rights law to foreign investment and sanctions. He is also the author of Law and the Russian State: Russia's Legal Evolution from Peter the Great to Vladimir Putin (Bloomsbury, 2018).
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Kennan Institute
The Kennan Institute is the premier US center for advanced research on Russia and Eurasia and the oldest and largest regional program at the Woodrow Wilson International Center for Scholars. The Kennan Institute is committed to improving American understanding of Russia, Ukraine, Central Asia, the Caucasus, and the surrounding region though research and exchange. Read more
