Politico-Economic Results in May 2014

Russian economic Developments. Moscow, 2014, #6, pp. 2-14

3 Pages Posted: 25 Jun 2014

See all articles by Sergei Zhavoronkov

Sergei Zhavoronkov

Gaidar Institute for Economic Policy

Date Written: June 24, 2014

Abstract

Tensions in the eastern Ukraine were eased a bit in May 2014, although the causes of the conflict still remain to be resolved. There is a fragile balance today between the Ukrainian military forces and the armed groups of supporters of federalism in Donetsk and Lugansk regions. In the circumstances, Russian leaders made a few conciliatory statements, making it clear that Russia is ready for a dialogue with Ukrainian President P. Poroshenko elected on May 25, 2014. Beside the military issues, there is a serious Russia-Ukraine conflict over payments for Russia’s natural gas supplies to Ukraine. Russia entered into a contract with China on large supplies of natural gas in the long-run perspective. The profitability of the contract remains questionable due to the need to build from scratch a new pipeline, however, Russia seems to be seriously interested in China’s potential to finance, even now, the Russian economy. The anticipated Treaty on the Establishment of the Eurasian Economic Community covering Russia, Kazakhstan and Belarus was signed, without causing any sensations. Russia made minor concessions but gained its principal point on the impropriety of nulling export duties on hydrocarbons in trade relations between the countries.

Keywords: Russian economy, political situation

JEL Classification: K00, K01, K04, D73, D74

Suggested Citation

Zhavoronkov, Sergei, Politico-Economic Results in May 2014 (June 24, 2014). Russian economic Developments. Moscow, 2014, #6, pp. 2-14, Available at SSRN: https://ssrn.com/abstract=2458416 or http://dx.doi.org/10.2139/ssrn.2458416

Sergei Zhavoronkov (Contact Author)

Gaidar Institute for Economic Policy ( email )

3-5 Gazetny Lane
Moscow, 125009
Russia

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
31
Abstract Views
393
PlumX Metrics