Monday, March 17, 2014

The Home Front: The Kremlin’s belligerence in Ukraine will ultimately weaken Russia

http://www.economist.com/news/europe/21599061-kremlins-belligerence-ukraine-will-ultimately-weaken-russia-home-front

This article makes a very interesting analyses of sanctions that the EU and the US are threatening Russia with. As article points out this is exactly what Mr. Putin wants and it provides him with a great opportunity to blame Russia economic downturn on the West. This might not satisfy the elites, who store their money and buy assets abroad, but considering how slow the West has been in assigning sanctions, they might have enough time to move their cash elsewhere. Putin has been warning the elites, but it mostly lead to capital flight, increase in the cost of borrowing and restriction of the new investments.

Putin is painting a bright picture through the total control of the media sources. But not everyone is buying what Putin is selling even in his own country. The article refers to the letter sent to Putin by a journalist from Vologda, the heart of Russia, provides a clue as to how some ordinary Russians feel. “Could you also send the troops to the Vologda region?” it said. “We are all Russian-speakers here and our rights are really infringed upon: our sick cannot get medication and care, our education is getting worse every year, our agriculture is dead.” I am personally very curious as to how economist got its hands on this letter but regardless this is how a great number of people in Russia feel about Putin and his propaganda machine. 

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