In Russia, Economic Recovery Remains Elusive

It appears there may be some good news for Russia's battered economy. On April 30, Russia's Central Bank lowered its benchmark interest rate from 14 percent to 12.5 percent. Earlier in the month, Russian Central Bank Governor Elvira Nabiullina announced that the ruble is "in more or less a balanced situation." Throughout April, after months of scrapped bond sales, Russia successfully auctioned bonds. Moreover, during his Direct Line television appearance April 16, Russian President Vladimir Putin said that the worst is over for Russia's economy.

But these seemingly positive signs do not indicate an overall long-term economic recovery. Russia's energy sector, mining industry and foreign businesses continue to face financial challenges. Ordinary Russians continue to experience food inflation and continued lack of access to affordable credit. Ultimately, these economic troubles will complicate, if not undermine, the Kremlin's ability to lead while raising its perennial fears of social unrest.