Even though Russia‘s economy has returned to growth—on the back
of higher oil prices—the financial crisis of 2008-09 will continue to
reverberate across Russian politics and foreign policy. Domestically,
the crisis has called into question the ―social...
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Even though Russia‘s economy has returned to growth—on the back
of higher oil prices—the financial crisis of 2008-09 will continue to
reverberate across Russian politics and foreign policy. Domestically,
the crisis has called into question the ―social bargain‖ of the Putin
years. It has also complicated President Dmitry Medvedev‘s push for
economic liberalization and modernization. By restricting
opportunities for rent-seeking among the various politically connected
oligarchic factions, the crisis has exposed fissures within the elite. In
terms of foreign policy, the crisis has limited the effectiveness of
Russia‘s principal sources of leverage: energy resources, the military
and foreign investment. If the worst is indeed over, much of the
momentum for further reform is likely to dissipate, leaving Russia
facing a recovery that is slower and less complete than that of other
large industrial states (such as China and India). If there is to be a
silver lining for Russia in
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