March 19, 2021

Coming Up Roses


Coming Up Roses
Maybe the value of the ruble will rise again soon. Petar Milošević, Wikimedia Commons

Russia has apparently emerged victorious from the first year of the COVID-19 pandemic in two key ways: its vaccine has turned out to be highly effective even as Europeans struggle to get vaccinated, and its economy has turned out to be more resilient than most.

Moscow's Higher School of Economics (HSE), named after the London School of Economics, released a report showing how Russia's GDP remained happily consistent in 2020 relative to the rest of the world.

An ironic consequence of the 2014 economic sanctions against Russia is that the economy contracted well before 2020 and began preparing for the worst of times. According to this new research, this shift brought stagnation to the pandemic-era Russian economy rather than recession or depression.

Typically, Russia is hit worse by global economic problems. In the 2008-2009 recession, the world economy declined by (only?) .01%, while Russia's economy declined by 7.8%. Conversely, in 2020, the global economy receded by 3.5% and Russia came out looking better than the U.S., Japan, Germany, France, and Spain.

The HSE report outlines three key reasons for Russia's macroeconomic success: 1. The so-called "budget rule," 2. Business loans, and 3. State-sponsored businesses.

Russia had hedged against a falling oil price by "saving, not splurging" the revenue generated in periods of a high price per barrel. This is the "budget rule." It is the same kind of economic thinking that makes subsistence farmers invent ways to preserve surplus food for leaner times. The budget rule is smart, not sexy, policy; you will not see any $1.9 trillion stimulus packages coming out of Moscow.

The second key to Russia's economic success is giving businesses loans to cover salaries and lowering insurance premiums for businesses during the pandemic.

The third aspect is that more Russian businesses were already state-sponsored and larger than in the West. The service sector is also smaller in Russia.

Praise for Russia's economy has come from the International Monetary Fund and even The Moscow Times. Compare this to The Moscow Times' prediction last March that the pandemic might destroy Russia's "isolated" economy.

It turns out that isolation is an advantage when it comes to a global pandemic.

Like this post? Get a weekly email digest + member-only deals

Some of our Books

Fish
February 01, 2010

Fish

This mesmerizing novel from one of Russia’s most important modern authors traces the life journey of a selfless Russian everywoman. In the wake of the Soviet breakup, inexorable forces drag Vera across the breadth of the Russian empire. Facing a relentless onslaught of human and social trials, she swims against the current of life, countering adversity and pain with compassion and hope, in many ways personifying Mother Russia’s torment and resilience amid the Soviet disintegration.

The Pet Hawk of the House of Abbas
October 01, 2013

The Pet Hawk of the House of Abbas

This exciting new trilogy by a Russian author – who has been compared to Orhan Pamuk and Umberto Eco – vividly recreates a lost world, yet its passions and characters are entirely relevant to the present day. Full of mystery, memorable characters, and non-stop adventure, The Pet Hawk of the House of Abbas is a must read for lovers of historical fiction and international thrillers.

 
The Moscow Eccentric
December 01, 2016

The Moscow Eccentric

Advance reviewers are calling this new translation "a coup" and "a remarkable achievement." This rediscovered gem of a novel by one of Russia's finest writers explores some of the thorniest issues of the early twentieth century.

Life Stories
September 01, 2009

Life Stories

The Life Stories collection is a nice introduction to contemporary Russian fiction: many of the 19 authors featured here have won major Russian literary prizes and/or become bestsellers. These are life-affirming stories of love, family, hope, rebirth, mystery and imagination, masterfully translated by some of the best Russian-English translators working today. The selections reassert the power of Russian literature to affect readers of all cultures in profound and lasting ways. Best of all, 100% of the profits from the sale of this book are going to benefit Russian hospice—not-for-profit care for fellow human beings who are nearing the end of their own life stories.

The Latchkey Murders
July 01, 2015

The Latchkey Murders

Senior Lieutenant Pavel Matyushkin is back on the case in this prequel to the popular mystery Murder at the Dacha, in which a serial killer is on the loose in Khrushchev’s Moscow...

Bears in the Caviar
May 01, 2015

Bears in the Caviar

Bears in the Caviar is a hilarious and insightful memoir by a diplomat who was “present at the creation” of US-Soviet relations. Charles Thayer headed off to Russia in 1933, calculating that if he could just learn Russian and be on the spot when the US and USSR established relations, he could make himself indispensable and start a career in the foreign service. Remarkably, he pulled it of.

How Russia Got That Way
September 20, 2025

How Russia Got That Way

A fast-paced crash course in Russian history, from Norsemen to Navalny, that explores the ways the Kremlin uses history to achieve its ends.

Russian Rules
November 16, 2011

Russian Rules

From the shores of the White Sea to Moscow and the Northern Caucasus, Russian Rules is a high-speed thriller based on actual events, terrifying possibilities, and some really stupid decisions.

Faith & Humor
December 01, 2011

Faith & Humor

A book that dares to explore the humanity of priests and pilgrims, saints and sinners, Faith & Humor has been both a runaway bestseller in Russia and the focus of heated controversy – as often happens when a thoughtful writer takes on sacred cows. The stories, aphorisms, anecdotes, dialogues and adventures in this volume comprise an encyclopedia of modern Russian Orthodoxy, and thereby of Russian life.

About Us

Russian Life is a publication of a 30-year-young, award-winning publishing house that creates a bimonthly magazine, books, maps, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955