Putin Tries to Talk Russia Out of Economic Disaster

Growth is inevitable, Russia’s de facto dictator Putin says at a press conference now aired on BBC News. But the facts say that the Russian economy is heading towards disaster:

On December 15th Brent crude barely budged—it dropped by 1%—but the rouble plummeted, losing 10% of its value against the dollar, the worst drop since the previous rouble crash in 1998. The Central Bank of Russia is thought to have intervened, using $2 billion to buy roubles. This did not work, and nor did the midnight rate hike: the rouble lost another 11% on December 16th.

Update: Putin is now rambling on about the West trying to destroy Russia by supporting terrorism in Chechnya and by criticizing human-rights violations. He is also saying that the West abused Russia’s vulnerable position in the years after the collapse of the Soviet Union, not least by allowing new members into NATO. Over all, Putin’s mindset is very much that of the Cold War—it’s all about Russia towards the West.