Mar 25, 2008

FT Asks, Is Russia's Economy Due for a "Cold Shower?"

Medvedev granted FT a high-profile interview. Since it was the FT, he kept himself primarly to economic issues.

The take-away message is that Medvedev remains bullish on energy prices and the Kremlin's cash on hand. He also -- oddly -- claims that Russia's stock market is an "island of stability" amid the global tourmoil. If so, this island has been listing under the waves of late, as the index has dropped -14.2% since Jan. 1, 2008.

Ture, most global markets have been taking a beating, but Russia has fared worse than S. Korea (-13.3%), Brazil (-7.7), Canada (-7.6), and the US (-6.8), during the same period. In Medvedev's defence, the Russian stock exchange has outpreformed the UK (-14.9) and Japan (-18.5). But a -14% bloodbath doesn't really invoke the same image as an "island of stability."

Here's the video highlights.

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