World press on Russian economy (May 23, 2014)

"Competing Visions for Russia’s Economic Future" is an article about the Economic Forum which took place in St. Petersburg published today by the New York Times. 

"Russia stands at a critical crossroads. President Vladimir V. Putin just struck a major gas deal with China, but the first profits will not flow for years. European and American financing is drying up while the crisis in Ukraine unfolds, and Russia’s own businesses and wealthy individuals are sending money abroad. With oil prices flat and the flight of capital from Russia, the International Monetary Fund projects that Russia’s economy will grow a meager 0.2 percent this year," the article reads. 

"The Obama administration dissuaded many chief executives of American companies like PepsiCo, Alcoa and ConocoPhillips from attending. Even many German chief executives stayed home, in spite of Germany’s extensive trade ties to Russia. Olaf Koch, director of the hypermarket chain Metro, was the only major head of a German company to attend, saying he felt responsible for the well-being of Metro’s 22,000 employees in Russia. Instead, the meeting was largely dominated by officials, policy wonks and executives from Russia, as well as Chinese investors."

"In the past, Russia has been trumpeted as a resource-rich country with strong potential. Discussion turned on the subtleties of stimulus policies, or whether emerging markets should have more of a voice in global economic decision-making. This year, the debate centered on whether Russia even needs Western finance, hinting at the return of a heavily state-dominated economic system. In recent weeks, the investment mood in the country has improved somewhat. Signs of a de-escalation of the conflict in Ukraine mean wider sanctions are less likely. As risk of a Russian invasion faded, the yield on Russia’s benchmark 10-year government bond dropped to 8.7 percent, from a peak of 9.5 percent at the end of April."