Coronavirus pandemic seriously challenges Russian economy

A combination of socio-economic factors observed in Russia not only indicates that the impact of the coronavirus crisis on the country's economy will be profound, but that the recovery might take longer than it appears today. Much will depend on the authorities’ readiness to support household incomes and business activity through accumulated reserves and borrowings.

Russia has approached the beginning of the coronavirus pandemic with the economy not in great condition. Back in 2010-2012 the Russian economy was growing faster than the world economy. Yet since then, its global share has fallen by about one-fifth. In 2014, following the events in Ukraine, the Russian economy suffered a double blow as a result of lower oil prices and the impact of sanctions imposed on it by the United States, the European Union and a number of other countries.