Abstract

Over the past 15 years, Russia’s model of political-economy has evolved around three main channels of global economic integration: 1) export of natural resources and a national system of redistribution of export revenues; 2) financialisation, acting as a boost for domestic consumption/demand; and 3) the offshore integration of Russian capital into global capital markets. The current crisis is affecting all three channels of Russia’s global political economy. Together, reduced export revenues, the deepening financial crisis and the dominance of offshore-sourced investments into Russia, serve as crisis transmission mechanisms, and thus constitute three sets of (inter-related) dilemmas for the Russian authorities. Four scenarios of possible development of the current situation are provided.