Russia: fall hard Study the implications of lower oil prices on Russia's oil power

Abstract

The relationship of Russia and Ukraine ended to crisis, subsequently is annexation of Russia to the CRIMEA in 2014. The island, through referendum describes by United States and European countries as an illegal and contrary to the international law initiated subsequently to use diplomatic efforts to manage the crisis. The first two-way impose economic sanctions on the most significant sectors that construct the joints of the strength of Russia. The financial sector, defense and energy sector revolved around the intentional reduction of oil prices in the global markets. Eventually the painful economic cost is forcing the Russian President (Vladimir Putin) to modify the intervention in eastern Ukraine and re-CRIMEA forth from side and show more flexibility in dealing with the United States of America. However, the exaggerated of the estimated amount to the contribution of oil (crude) in the Russian economic growth equation, as Russia does not rely only on oil in achieving economic growth. Hence the erosion of oil prices will not be strong factor pressured, so that lead Putin altered its external policies