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.

Query
Template: /muraWRM/core/mura/content/feed/feedGateway.cfc:250
Execution Time: 0.791 ms
Record Count: 0
Cached: No
Lazy: No
SQL:
SELECT
tcontent.siteid, tcontent.title, tcontent.menutitle, tcontent.restricted, tcontent.restrictgroups,
tcontent.type, tcontent.subType, tcontent.filename, tcontent.displaystart, tcontent.displaystop,
tcontent.remotesource, tcontent.remoteURL,tcontent.remotesourceURL, tcontent.keypoints,
tcontent.contentID, tcontent.parentID, tcontent.approved, tcontent.isLocked, tcontent.contentHistID,tcontent.target, tcontent.targetParams,
tcontent.releaseDate, tcontent.lastupdate,tcontent.summary,
tfiles.fileSize,tfiles.fileExt,tcontent.fileid,
tcontent.tags,tcontent.credits,tcontent.audience, tcontent.orderNo,
tcontentstats.rating,tcontentstats.totalVotes,tcontentstats.downVotes,tcontentstats.upVotes,
tcontentstats.comments, tparent.type parentType,
tcontent.path, tcontent.created, tcontent.nextn, tcontent.majorVersion, tcontent.minorVersion, tcontentstats.lockID, tcontentstats.lockType, tcontent.expires,
tfiles.filename as AssocFilename,tcontent.displayInterval,tcontent.display,tcontentfilemetadata.altText as fileAltText,tcontent.changesetid
FROM
tcontent
left Join tfiles on (tcontent.fileid=tfiles.fileid)
left Join tcontentstats on (tcontent.contentid=tcontentstats.contentid
and tcontent.siteid=tcontentstats.siteid)
Left Join tcontent tparent on (tcontent.parentid=tparent.contentid
and tcontent.siteid=tparent.siteid
and tparent.active=1)
Left Join tcontentfilemetadata on (tcontent.fileid=tcontentfilemetadata.fileid
and tcontent.contenthistid=tcontentfilemetadata.contenthistid
and tcontent.siteid=tcontentfilemetadata.siteid)
WHERE
tcontent.siteid in ('default')
and tcontent.active = 1
and tcontent.Approved = 1
AND tcontent.isNav = 1
AND tcontent.moduleid = '00000000000000000000000000000000000'
AND tcontent.searchExclude = 0
AND tcontent.contentid <> '00000000000000000000000000000000001'
AND tcontent.type <>'Module'
and (
tcontent.parentid
=
'F5B94014-E0A5-BF0B-05B9605A2811790F'
and
tcontent.subtype
=
'footnote'
)
AND (
tcontent.Display = 1
OR
(
tcontent.Display = 2
AND
(
(
tparent.type!='Calendar'
and tcontent.DisplayStart <=
{ts '2026-04-03 09:05:00'}
and (tcontent.DisplayStop >=
{ts '2026-04-03 09:05:00'} or tcontent.DisplayStop is null)
) OR (
tparent.type='Calendar'
and tcontent.DisplayStart <=
{ts '2027-04-03 09:05:00'}
and (tcontent.DisplayStop >=
{ts '2026-04-03 09:05:00'} or tcontent.DisplayStop is null)
)
)
)
)
AND (
tcontent.mobileExclude is null
OR
tcontent.mobileExclude in (0,1)
)
order by
tcontent.lastUpdate desc
siteidtitlemenutitlerestrictedrestrictgroupstypesubTypefilenamedisplaystartdisplaystopremotesourceremoteURLremotesourceURLkeypointscontentIDparentIDapprovedisLockedcontentHistIDtargettargetParamsreleaseDatelastupdatesummaryfileSizefileExtfileidtagscreditsaudienceorderNoratingtotalVotesdownVotesupVotescommentsparentTypepathcreatednextnmajorVersionminorVersionlockIDlockTypeexpiresAssocFilenamedisplayIntervaldisplayfileAltTextchangesetid
Like this post? Get a weekly email digest + member-only deals

Some of our Books

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.

Driving Down Russia's Spine
June 01, 2016

Driving Down Russia's Spine

The story of the epic Spine of Russia trip, intertwining fascinating subject profiles with digressions into historical and cultural themes relevant to understanding modern Russia. 

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...

Stargorod: A Novel in Many Voices
May 01, 2013

Stargorod: A Novel in Many Voices

Stargorod is a mid-sized provincial city that exists only in Russian metaphorical space. It has its roots in Gogol, and Ilf and Petrov, and is a place far from Moscow, but close to Russian hearts. It is a place of mystery and normality, of provincial innocence and Black Earth wisdom. Strange, inexplicable things happen in Stargorod. So do good things. And bad things. A lot like life everywhere, one might say. Only with a heavy dose of vodka, longing and mystery.

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.

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.

White Magic
June 01, 2021

White Magic

The thirteen tales in this volume – all written by Russian émigrés, writers who fled their native country in the early twentieth century – contain a fair dose of magic and mysticism, of terror and the supernatural. There are Petersburg revenants, grief-stricken avengers, Lithuanian vampires, flying skeletons, murders and duels, and even a ghostly Edgar Allen Poe.

A Taste of Russia
November 01, 2012

A Taste of Russia

The definitive modern cookbook on Russian cuisine has been totally updated and redesigned in a 30th Anniversary Edition. Layering superbly researched recipes with informative essays on the dishes' rich historical and cultural context, A Taste of Russia includes over 200 recipes on everything from borshch to blini, from Salmon Coulibiac to Beef Stew with Rum, from Marinated Mushrooms to Walnut-honey Filled Pies. A Taste of Russia shows off the best that Russian cooking has to offer. Full of great quotes from Russian literature about Russian food and designed in a convenient wide format that stays open during use.

Murder and the Muse
December 12, 2016

Murder and the Muse

KGB Chief Andropov has tapped Matyushkin to solve a brazen jewel heist from Picasso’s wife at the posh Metropole Hotel. But when the case bleeds over into murder, machinations, and international intrigue, not everyone is eager to see where the clues might lead.

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