Unlike Putin, listen to your customers.
The Russian President, Prime Minster and President yet again has controlled Russia since 1999. Now after 15 years, he blames this month’s Russian economic crisis, (he asked journalist to call it anything but a crisis) on “outside sources.” Oh dear: when his foreign oil & gas sales to Europe boomed, his only interference with pricing was to ensure that Ukraine paid higher prices if one of his friends was not President there.
Seems he has not learned, record USA shale gas production has led to an oil and gas glut and Russian income was rumoured to be over 50% from energy sales. Large recent energy price drops will not stop as there is no olitical will to do so: nearly all producers need high oil revenues. Their high supply now, in the face of a decreasing demand, is to placate their population’s anger at governmental policies aligned with presidential whims, refusal to hear citizens' voices, using country assets to bolster presidential pockets plus the condemned invasion of East Ukraine, which caused a bypass of Russian products by those with ethics.
Perhaps on hindsight Mr Putin could have listened to the “outside sources” so his central bank monetarists would not have been forced into their 1st huge interest rate rise this week, to stop the rouble crumbling. The market expects more drastic actions. Learn from Putin’s mistakes: listen to your market!