![]() ![]() While the economy suffered a recession as a result of the global financial crisis in 2008, growth was swiftly restored.Īnnual household income rose to an estimated USD 10,000 per capita in 2013, but by 2022 had contracted to only USD 7,900. Inflation fell and the economy grew by around 7% a year, although real wages declined. PUTIN'S ECONOMIC MIRACLE?Īfter the September 11, 2001, attacks and subsequent US-led global war on terror, Russia’s economy rebounded considerably, aided by high energy prices.īetween 20, average disposable income increased considerably. Such has been Russia’s reliance on energy that by 2021, taxes and dividends from oil and gas companies accounted for 45% of Russia’s federal budget. This sent both an economic and a political message: Russia’s future prosperity would be driven by energy revenues, and Russia’s oligarchs would only prosper at Putin’s pleasure. In 2004, he effectively renationalised the oil and gas industries after the forced breakup of Yukos, which controlled around 20% of Russia’s oil production.ĪLSO READ | Will history be kind to Vladimir Putin? ![]() He amended Russia’s tax code, replacing an arcane system of loopholes and tax breaks with flat rates to boost compliance. Upon assuming the leadership, Putin set about stabilising the economy. Russians elected him with 53% of the vote, more out of a sense of relief than enthusiasm. He faced little opposition once two leading political figures – Moscow mayor Yuri Luzhkov and former Prime Minister Yevgeny Primakov – pulled out of the race. In his debut campaign, Putin offered little beyond a vague promise to restore order and make Russia a great power again. He played up this theme during Russia’s presidential election in 2000, which followed the crippling 1998 Russian financial crisis, and was held amid Russia’s second war in Chechnya.ĪLSO READ | Russian lawmaker who hung noodles on ears during Putin’s war speech faces action Putin’s willingness to protect the interests of “the family” – the network of cronies and oligarchs comprising Yeltsin’s inner circle – made him an obscure but nonetheless logical choice.Ī struggle for order and stability has been a consistent leitmotif in how Putin has portrayed himself. ![]()
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