Dmitry Nechaev, a Moscow bicycle workshop owner, fears the future post-lockdown. Economist Sergei Guriev discusses Russia's economy impact. Topics include premature lockdown easing, small business struggles, and Putin's crisis management.
Small businesses in Russia struggle due to lack of government support and bureaucratic procedures.
Putin's declining popularity and economic challenges may lead to instability within his administration.
Deep dives
Challenges Faced by Small Businesses in Russia
Many small businesses in Russia are struggling to pay wages after the lockdown period due to lack of sales and resources. Business owners like Dimitri Nacheaev had to stop production and ask creditors for support. The government's bureaucratic procedures make it difficult for small companies to receive compensation or grants, leading to rising unemployment levels. The economic crisis and lack of support highlight the challenges faced by small businesses in Russia.
Economic Impact and Government Response in Russia
Russia's GDP is predicted to decline by 8% this year due to the global oil price collapse, affecting various sectors. The government's support measures have been criticized as insufficient, with delays in providing aid to small and medium-sized businesses. Despite having a significant sovereign wealth fund, the government's response to the economic crisis has been viewed as conservative and lacking adequate support for businesses.
Political Challenges and Putin's Leadership
Putin's popularity as a leader has declined, with recent polling indicating lower ratings. The upcoming constitutional referendum, allowing Putin to extend his presidency, reflects his efforts to maintain power amidst economic challenges and falling popularity. Analysts suggest that Putin's inner circle, dominated by ex-KGB members, may face instability and challenges if economic conditions worsen, potentially leading to political fallout and power struggles within the administration.
Russia is ending its lockdown as officials congratulate citizens on a shared victory. But with infection rates still sky-high, some say it's premature, and that it's more to do with politics than the best interests of the nation. What's at stake for Russia and its strongman, Vladimir Putin?
On this edition of the programme, we hear from Dmitry Nechaev who runs a bicycle workshop in Moscow on his fears for the future. Economist Sergei Guriev talks about the economic impact of the pandemic on Russia's economy and the country's small businesses; and Catherine Belton, author of Putin's People, explains the political fallout of Vladimir Putin's handling of the crisis.
(Image: A commuter in a face masks on a Moscow Underground train. Credit: Getty Images).
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