As winter draws in
Article Abstract:
Russia had started to develop a normal economy where hard work could lead to rewards, but most of the financial system collapsed after the Aug 1998 default on Russia's domestic debt and the drop in value of the ruble. Bank savings have officially been frozen and have in fact disappeared, imports have dropped, distribution has been hit, and there have been many job losses. The economy was already characterised by barter and lack of investment, but since the default, wage arrears have shot up and barter is even more attractive. Salaries and office rents have dropped, and there are some signs for optimism. though recovery will not be rapid.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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Out of control
Article Abstract:
Chechnya's acting prime minister, Shamil Basev, has stated that he could shut down a petroleum pipeline through Chechnya frm the Caspian Sea to the Black Sea. Chechnya has been hit by poverty, and Russia has not paid fundspromosed in May 1997. Salaries and pensions have not been paid. Kidnappings have blocked aid and kept out foreigners. Chechnya's status has become frozen since the 1996 peace agreement. Russia risks loss of the North Caucasus, since neighboring Dagestan and North Ossetia are also unstable, but Russia has insufficient funds to use payments as a bargaining tool.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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