KRASNODAR, Russia — Last year was bad enough financially for Sergei and Victoria Titov, both music teachers getting along in years. Her government salary was slashed by one third, and rampant inflation put some basic groceries like eggplant and cucumbers out of reach.
Then came Jan. 1, and the abrupt decision by the regional government here in Krasnodar, the capital of Russia’s southern agricultural heartland, to chop transportation subsidies for older Russians, forcing the couple to limit their trolley rides.
Indignant and fearing worse amid Russia’s accelerating economic problems, Sergei joined an unauthorized demonstration last week by hundreds of older Russians who gathered under the bronze statue of a Cossack horseman on the main square here and chanted, “Return our benefits!”
They were not alone, neither in Krasnodar nor across this vast nation, where illegal protests and wildcat strikes are erupting with increasing frequency by truckers, teachers, factory workers and all sorts of Russians facing steep government cutbacks because of plummeting revenue from oil and gas.
The global collapse in oil prices is reordering economic relations around the world, but the change is particularly daunting for Russia, which relies on energy exports for 50 percent of its federal budget.
In December, President Vladimir V. Putin told the nation that the worst of the recession — the economy shrank 3.9 percent and inflation hit 12.9 percent in 2015 — was over and that modest growth would return in 2016. He has been pushing the oil collapse as an “opportunity” that will wean Russia off energy imports and diversify the economy.
Then in January oil fell below $30 per barrel, with no bottom in sight, and the ruble hit a record low of nearly 85 to the dollar before recovering slightly.
http://www.nytimes.com/2016/01/23/world/europe/russians-anxiety-swells-as-oil-prices-collapse.html?ref=world
Topic: Russians’ Anxiety Swells as Oil Prices Collapse (Read 326 times)
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