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. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Reforms are crucial to recovery

Russia: Fairy tale ending or start of a nightmare?

Real estate: Rebuilding a house of cards

Russia urgently needs to reform its economy if it is to stage a sustainable recovery from the twin ills of the global credit crunch and associated economic slowdown.

That’s the clear message from market participants, many of whom view the recent recovery in Russia’s capital markets as a temporary respite. "The reality on the ground is that growth, industrial output and investment are still declining fast," says Bernie Sucher, head of Merrill Lynch Securities in Russia. The latest available data show that GDP growth has plummeted from 8% in the first half of 2008 to minus 8%, industrial output growth has gone from 10% to minus 12% and investment growth from 7.5% to minus 7.5%.

"The entire political, social and economic system is being tested by the crisis," says Sucher. "People are fighting fires all over the place, but new fires are still breaking out." A recent report by investment bank Renaissance Capital points out: "When oil prices were well above $100 a barrel, with economic growth approaching 10% and real personal income growth exceeding 10%, calls for reform were muted, to say the least.

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