Bloomberg paints a grim picture of Russia’s intellectual resources depleting as international sanctions bite harder.
The piece by Jason Corcoran, Jake Rudnitsky and Serena Saitto looks at the Skolkovo innovations hub that is still being built – and many disillusioned startup founders packing their bags, like Artem Kulizhnikov, working to help musicians annotate music.
“Venture-capital investments in Russian fell 9 percent to $127 million in the second quarter,” Bloomberg quotes a report by Rye, Man & Gor Securities, a Russian investment firm as saying. “The Fund for Development of Internet Initiatives, a state-controlled entity founded in 2013, accounted for 39 percent of investments as foreign investors avoided Russia,” it adds.
Earlier, the government said it was not going to support the national currency and does not expect oil prices to go as low as $60 per barrel, says the Finance Ministry.
The rouble registered a new low against the dollar amid tough sanctions, uncertainty in Ukraine and the Yevtushenkov case involving Bashneft’s stocks.
The country could lose up to $50 billion, or 4 percent of GDP, due to sanctions and a drop in oil prices.
According to a report by Russia’s Finance Ministry, the geopolitical events would cost Russia 2 percent.
Maxim Oreshkin, head of the long-term strategic planning department, said the economy’s response to external shocks was surprisingly soft.
Russia sparked a wave of criticism after it incorporated Crimea into its territory following a referendum on the peninsula with a large ethnic Russian population.
The US and the EU imposed a raft of sanctions on Russian officials and individuals with close ties to the Kremlin.
The US also put space and military cooperation on hold, followed by some of its NATO allies, including the UK.
Author: Mikhail Vesely