The rapid depreciation of the ruble, despite a dramatic – and seemingly desperate – late-night interest-rate hike by the Central Bank of Russia (CBR) last month, has raised the specter of Russia’s economic meltdown in 1998. Indeed, the West has sought to animate that specter in its ongoing confrontation with Russian President Vladimir Putin. But, though Russia’s economy is undoubtedly in trouble, a full-blown collapse is unlikely. Oil and gas account for more than 60% of Russia’s exports; other primary commodities make up much of the rest. Given this, the recent sharp decline in world oil prices obviously represents ... (full story)