Russia Is Returning to Growth. (Just in Time for an Election.)
The central bank had to nationalize two midsize private lenders this year,
and several banks lost money betting against the ruble in recent years, according to Vladimir Tikhomirov, chief economist at BCS Global Markets, an investment bank.
The cost of Russian staples was rising: The price of bread, an important product
because of its mythologized status in the Soviet period as a symbol of well being, increased about 11 percent a year during the recession, according to the state statistics agency.
The Russian election offers Mr. Putin a chance to cement his grip on power, even as his country remains under
pressure from sanctions related to another election — the 2016 presidential vote in the United States.
Figures discussed on Friday at Mr. Putin’s meeting with government
and central bank officials showed strong consumer demand, a main driver of the growth.
But as the price of oil, a major export commodity, has recovered from multiyear
lows in 2014, Russia’s central bank has resumed purchases of hard currency.
Through the year, foreign investors have piled into Russian government bonds, raising the
share of Russian debt held by foreigners to more than 30 percent, up from 5 percent
Mr. Putin is widely expected to triumph in the March polls — there is no credible opposition,
and he has levers of the state, from fiscal largess to official media outlets, at his disposal.
