EU and UK officials have announced sanctions against six Russian officials and one scientific research institute as a result of Alexei Navalny's poisoning, which has been blamed on the Russian government. The sanctions demonstrate a downturn of bilateral relations between Russia and the EU.
This article discusses why Russia's new draft budget, meant to cover the next three years, does not include spending cuts. Russia, like most other countries, spent heavily during the coronavirus pandemic, creating a significant budget deficit. Yet the new budget, devoid of expected cuts that would've closed the deficit, presents an optimistic outlook on the Russian economy's recovery.
A Russian economy already weakened by the pandemic continues to fall, as EU leaders threaten sanctions due to the poisoning of Alexei Navalny. The poor economic outlook, unlikely to change in the near future, may force policymakers at Russia's Central Bank to continue cutting interest rates.
