The 2014–15 Russian Financial Crisis and the associated shrinking of the Russian economy is the result of the collapse of the Russian ruble beginning in the second half of 2014.The lack of confidence in the Russian economy stemmed from at least two major sources. The first is the fall in the price of oil in 2014. Crude oil, a major export of Russia, declined in price by nearly 50% between its yearly high in June 2014 and 16 December 2014.

1. RUSSIAN CRISIS
• Aastha Shanker
• Sneha Singh
• Nishant Bangar
• Ravi Bhojani
• Deshna Jain
• Suyash Arjyal
• Simon
• Abhishek Dongle

2. Phases of Russia
• Russia during Soviet Union
• Russia after Soviet Union (1991-1998)
• 1998 Financial Crisis
• Russia under Putin
• Russian Crisis - 2014

4. Russia after Soviet Union (1991-
1998)
• Shock Therapy
• Liberalization
• Stabilization
• Privatization

5. Price Variations in Privatization
(1994-1995)
Companies Auction Price by
GOVT.
(Mil. USD)
At Russian Stock Market
Prices
(Mil. USD)
Gazprom (natural gas) 250 40483
Unified Energy Services
(electricity)
957 17977
Lukoil (oil) 704 15839
Rostelecom (telecom) 464 4172
Yuganskneftegaz (oil) 80 1656
Surgutneftegaz (oil) 79 6069

6. 1998 Financial Crisis
• Currency Crisis
Imports > Exports.
Rouble devalued by government.

7. Russia under Putin
• GDP Growth Rate- 6-7% a year
• People’s income grew at 15% a
year
• Tax Reform- personal income tax
was decreased from 305 to flat
13% in 2001
• Renationalization and Corruption

8. Russian Crisis 2014
MAJOR REASONS
Fall in Oil Prices
Sanctions

9. Major Reason
• Fall In Oil Prices
- from $100/barrel in June 2014 to less than
$50/barrel in Jan 2015
- reasons
decrease in demand
shale oil production in US
OPEC countries reluctant to decrease the price

10. Major Reasons
• Economic Sanctions
- What are these sanctions?
- Why such sanctions?
- Why Russia invaded Ukraine?
- What is Crimea?
- Why Crimea?

12. How Bad Is The Situation?
• Decrease in trust in the currency
• Around $100bn debt to mature in 2015
• Declining foreign reserves
• High inflation – 11%
• Rating deteriorated from BBB to BBB(-)

13. THANK YOU