Russia could run out of money by the end of this year, economists predict

As the oil price tumbles and western sanctions continue, Russia is rapidly running out of money, and the national reserve fund may be empty by the end of the year.

The advances in the standard of living made during Vladimir Putin’s tenure as Russian President have been all but eliminated by a severe economic crisis and millions of people are now in poverty.

Due to western sanctions and the low price for oil, on which the Russian economy relies, Russia is out of money and its reserve fund, put in place to cover shortfalls in the national budget, has fallen from £67billion to £23billion since 2014.

By the end of this year, economics in Moscow say the fund will be exhausted completely unless the price of oil rallies.
Russian Prime Minister Dmitry Medvedev speaks in a panel discussion during the second day of the 52nd Munich Security Conference (MSC) in Munich, southern Germany, on February 13, 2016. 

Approval ratings for Putin, who is set to run in the 2018 presidential election, remain high, but they are largely built on his stabilisation of the Russian economy, and that support may begin to fade as the crisis worsens.
Last year, approximately 3.89billion roubles, or £34million, was not paid to workers in both the state and private sector, the prime minister, Dmitri Medvedev, said.

As a result lorry drivers, teachers and miners have held nationwide protests and strikes. Mr Medvedev has gone as far as to suggest that teachers take a second job to supplement their income.