As Russia hunkers down for ¡°decades¡± of U.S. sanctions, the chill in geopolitics is threatening to turn into a deep freeze for an economy retooling after the crash in oil prices.
By reluctantly codifying the penalties into law, U.S. President Donald Trump is ensuring that Russia¡¯s future may look much like its past as a petrostate. It also marks a shift to a ¡°new normal¡± that¡¯s all the scarier for being impossible to undo any time soon, according to Vladimir Miklashevsky, a senior economist at Danske Bank A/S.
Desperate to snap out of an investment torpor after its longest recession this century, the economy of the world¡¯s biggest energy exporter can¡¯t afford to remain walled off from foreign capital and technology. Russia was rated 111th among 138 nations in foreign direct investment and technological transfer by the World Economic Forum¡¯s Global Competitiveness Report.
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