World press on the economic situation in Russia and Turkey's involvement in the Syrian crisis (October 19-20, 2014)

 

World press on the economic situation in Russia and Turkey's involvement in the Syrian crisis (October 19-20, 2014)"Russia can withstand lower oil prices but not for very long," an article written by prominent Russian economist Sergei Guriev now living in Europe was published by the Financial Times on October 19.Guriev writes that "Russia should be able to withstand levels of $80 to $90 a barrel for about two years. But in the longer term, persistently low prices – reinforced by the pressure imposed by western sanctions – could pose an existential challenge to Vladimir Putin’s regime.""Oil and gas account for about half of government revenues in Russia; a price drop from $100 to $80 a barrel would cause a shortfall of about 2 per cent of GDP. Normally this would not be a great problem, as Russia would borrow in international markets, and Russian state-owned banks and companies would refinance their external debt.In the light of the west’s sanctions, the situation is a lot more uncomfortable. But this does not mean Russia will run out of cash before the end of 2017," the article reads."The government will have to choose whether to cut spending, and thus publicly recognise its inability to deliver on Mr Putin’s 2012 electoral promises, or raise taxes – which would further hit investment and GDP growth. Either way, if oil prices remain in the $80 to $90 range, the government will have to placate an electorate suffering lower living standards. The experience of recent months gives us a good idea of how Mr Putin will respond: by convincing the public that they are in a besieged fortress and must rally around the flag whatever the cost. This will require raising propaganda and political repression to yet another level – and may involve even more unpredictable foreign policy choices," the article concludes."Turkey Says It Will Aid Kurdish Forces in Fight for Kobani" is an article which appeared in the New York Times on October 20. "The announcement, along with an American decision to use military aircraft to drop ammunition and small arms to resupply Kurdish fighters, reflected escalating international pressure to push back Islamic State militants who have been attacking the Kurdish town for more than a month. The battle has become a closely watched test for the Obama administration as it embarks on a fight reliant on air power against the militant group in Iraq and Syria. It has also raised tensions across the border in Turkey, where Kurds have accused the government of President Recep Tayyip Erdogan of abandoning Kobani to militants from the group Islamic State, also known as ISIS or ISIL," the article reads."Until now, Turkey has denied access to Kurdish fighters trying to cross its borders to help the embattled town because of concerns about empowering the Kurdish separatists who have for decades battled the Turkish government for autonomy."

"Russia can withstand lower oil prices but not for very long," an article written by prominent Russian economist Sergei Guriev now living in Europe was published by the Financial Times on October 19.
Guriev writes that "Russia should be able to withstand levels of $80 to $90 a barrel for about two years. But in the longer term, persistently low prices – reinforced by the pressure imposed by western sanctions – could pose an existential challenge to Vladimir Putin’s regime."
"Oil and gas account for about half of government revenues in Russia; a price drop from $100 to $80 a barrel would cause a shortfall of about 2 per cent of GDP. Normally this would not be a great problem, as Russia would borrow in international markets, and Russian state-owned banks and companies would refinance their external debt.In the light of the west’s sanctions, the situation is a lot more uncomfortable. But this does not mean Russia will run out of cash before the end of 2017," the article reads.
"The government will have to choose whether to cut spending, and thus publicly recognise its inability to deliver on Mr Putin’s 2012 electoral promises, or raise taxes – which would further hit investment and GDP growth. Either way, if oil prices remain in the $80 to $90 range, the government will have to placate an electorate suffering lower living standards. The experience of recent months gives us a good idea of how Mr Putin will respond: by convincing the public that they are in a besieged fortress and must rally around the flag whatever the cost. This will require raising propaganda and political repression to yet another level – and may involve even more unpredictable foreign policy choices," the article concludes.
"Turkey Says It Will Aid Kurdish Forces in Fight for Kobani" is an article which appeared in the New York Times on October 20. 
"The announcement, along with an American decision to use military aircraft to drop ammunition and small arms to resupply Kurdish fighters, reflected escalating international pressure to push back Islamic State militants who have been attacking the Kurdish town for more than a month. The battle has become a closely watched test for the Obama administration as it embarks on a fight reliant on air power against the militant group in Iraq and Syria. It has also raised tensions across the border in Turkey, where Kurds have accused the government of President Recep Tayyip Erdogan of abandoning Kobani to militants from the group Islamic State, also known as ISIS or ISIL," the article reads.
"Until now, Turkey has denied access to Kurdish fighters trying to cross its borders to help the embattled town because of concerns about empowering the Kurdish separatists who have for decades battled the Turkish government for autonomy."