China’s devaluation calls Russia’s pivot to Asia into question

EPA/VADIM RUSAKOV

A file photo dated 22 November 1992 showing oil-pumping equipment standing abandoned at the oil well site near Surgut in Siberia, Russia. Global investors are worried by plummeting oil prices, which have fallen by about 50 per cent since the middle of the year as a result of a world-wide glut in oil and weak demand in the eurozone and China.

Short-to-medium economic prospects are bleak, whilst completing an economic u-turn requires billions in investment


Recession in Russia has deepened over the past few months. The Russian economy has in the second quarter contracted by 4.6%, year-on-year.

The main cause is of course falling oil prices. Last week oil prices approached the $42 a barrel threshold (the lowest since 2009). Of course low oil prices are pushing out of the market non-conventional oil producers – US shale, Canadian tar sands, and deep sea explorations. But Iran is coming in the market after a long economic embargo, China is devalu...


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