The market is under the pressure of “swans”. What makes us talk about the acute phase of the crisis?

The head of the Central Bank, Elvira Nabiullina, stubbornly keeps the rate high.

Photo by ALEXANDER ZEMLIANICHENKO / POOL / AFP

The budget crisis, superimposed on the fuel crisis, the ultimatum of the head of the Russian Union of Industrialists and Entrepreneurs Alexander Shokhin, the fall in oil prices and the deterioration of relations with Trump - all this happened last week and did not pass without a trace. Elvira Nabiullina showed up for the first time after her illness, but it didn’t make things any easier—she reduced her rate by only a quarter of a percentage point. As a result, the Russian stock market hit one bottom after another, and the Ministry of Finance canceled the OFZ auction for the first time in two years. Maxim Blunt* does not rule out that the crisis in the Russian economy is already entering an acute phase.

The head of the Bank of Russia, Elvira Nabiullina, who unexpectedly disappeared from public space on the first day of the International St. Petersburg Economic Forum (according to the official version, due to illness), recovered and held a press conference on the results of the meeting of the Board of Directors of the Central Bank on June 19. The rate was reduced at this meeting, but not at all as most analysts predicted. Instead of the now customary step of half a percentage point, there is only a quarter. Thus, the key rate became 14.25% per annum.

Subscribe to read in full

Subscribe to Redefine.Media to read Republic

Subscribe [You can pay with a Russian or foreign card. The subscription is renewed automatically. You can unsubscribe at any time.]

Where does the subscribers' money go?

Most Republic content is available through a paid subscription. We think this is a good way to finance media. After all, as you know, if you didn’t pay to read it, then someone else paid for you to read it. In our case, everything is fair: your money pays salaries and fees to journalists, and they write about topics that are important and interesting to you.

A key feature of our subscription: Your money is split across Republic magazines based on how you read them. If you read materials from one magazine, then your money will go only to him, and will not go to others. That is, you finance only what interests you.

Republic uses a Redefine.Media subscription. To register, we will redirect you to the Redefine.Media website, where you will need to register and pay for a subscription. Logging into the Redefine.Media website will allow you to read Republic materials from the same device.

A yearly subscription is more profitable than a monthly subscription. And if you want to unsubscribe, you can always do this in your personal account.