The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Capital crunch sets in as the business cycle takes its toll

Russia took off on high oil prices and the export advantages of a weak rouble. Consumers latched on and the government began institutional reform designed to sustain and broaden growth sectors. So far, so good. But reform – particularly the crucial development of banking and capital markets – is incomplete and a capital-starved economy is hitting capacity ceilings.

Healthy demand has kept consumer industries at the top
of the growth tables

The Russian economy has put in a sparkling performance over the past three years but just how far has the country gone down the road to reform? The fast growth of recent years peaked last summer. As the year ended, though, things went off the boil as the global economy cooled and the slack in Russia's production capacity was taken up.

Has the window of opportunity closed? A close look suggests that enough has been done in the past three years to fuel sustained growth but from now on the pace will depend - for the first time - on president Vladimir Putin's success at pushing through, and implementing, his radical reform programme.

For most of the past three years the lack of a working banking system and the string of liberal legislation that has been passed has had virtually no effect on growth.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree