When Vladimir Putin became President, Russia was effectively bankrupt as it owed more money to the International Monetary Fund (IMF) than it had in foreign currency reserves. Since then, Russia has achieved a virtual macroeconomic revolution to the point where it is one of the largest creditors of U.S. debt in the world. Its nominal dollar GDP has increased by more than a factor of six, and has the potential to reach more than $2 trillion by 2010. Russia would become the largest economy in Europe and the fifth largest in the world following the United States, China, Japan, and India by 2020 if goals would have been achieved.......
I have made a comment on this post and I remember clearly that I mentioned that Russia will be one of the biggest country in the world in terms of economy. But I never Imagined that they were on the verge of bankruptcy before. This just shows that Putin was a good president and an expert on economics. If he was not the president of Russia how will they came back up again
In August 1998, the Russian government defaulted on their GKO bonds (which loosely match the US Treasury bonds). It was rather a technical default (due to current currency reserves running dry), but it is essentially the same as if the US government refused to pay outstanding interest on their debt, i.e. interest on the Treasuries. Unsurprisingly, the Russian ruble collapsed 3 times overnight. On the eve of the collapse (i.e. August 16th) the US dollar cost around 6 rubles, in about a week after defaulting one dollar was worth almost 20 rubles
Putinomics is mostly based on high oil prices, without such prices, the Russian economy is stagnating