Economic Recovery in Russia: Its Causes and Prospects

The economic recovery of Russia after the financial crisis in August 1998 has been driven by a large amount of •gnet export•h. The •gnet export•h was produced by low exchange rate of ruble and high price of oil. Using rough estimates of the future trend of the exchange rate and oil price, we can conclude that the Russian economic boom will not suffer a serious setback in the near future. In the longer term, however, Russia will face political and economic difficulties if Russians cannot restructure the oil-gas monoculture, which has been existed at the core of the economic recovery until now.