NEWSWATCH Reuters: Russia’s rich forego some luxuries but still back Putin

[“Russia’s rich forego some luxuries but still back Putin” – Reuters – Elizabeth Piper – 
March 29, 2015]

Reuters covers the reactions among Russia’s elite to economic changes such as Western sanctions, a falling ruble, oil price losses and other disruptions.

… the enforced modesty has not yet driven the super wealthy out of Russia or against President Vladimir Putin, who has fanned patriotism during the Ukraine crisis and appealed to businessmen to bring their money home to bolster Russia’s position in the worst standoff with the West since the Cold War.

After inheriting the situation that had prevailed under predecessor Boris Yeltins, Putin has relied on a strategy of allowing wealthy oligarchs to retain their assets if they stay out of politics.

Putin made a deal with private owners of big business – be loyal and stay out of politics and you can keep your assets.

 

It is a bargain which has largely held, even with the rouble down 40 percent against the U.S. dollar since last summer, and the economy weakened by a fall in global oil prices and Western economic sanctions over Ukraine.

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