Russia’s Hidden Underbelly of Debt

Author
Maya Rostowska
Content Type
Policy Brief
Institution
The Polish Institute of International Affairs
Abstract
Despite the reigning consensus that the Russian economy is facing trouble ahead, some indicators suggest that the situation is not as dire as first appeared. Moreover, it may seem that the fiscal situation in the country—particularly its copious foreign currency reserves and substantial sovereign wealth funds—could still help extricate Russia from its economic difficulties. However, the very difficult budgetary situation in the regions and the staggering levels of debt of its companies suggest that economic problems could hit the country hard. Investors should remain vigilant of social and political tensions and the possible further deterioration of the business environment in Russia.
Topic
Debt, Economics, Politics, Governance, Budget
Political Geography
Russia