THE ECONOMIC AND FINANCIAL CRISIS IN RUSSIA: ARE THE SANCTIONS THE ONLY REASON?

Abstract

In connection with the crisis phenomena in the Russian economy, there is a need to identify key factors, which had negative impact on the economy that resulted in adverse effect. At present, this topic is becoming increasingly important. The main objective of the article is to reveal the main factors, which have caused the crisis developments in economy ofthe country. The tasks ofthe research were set in accordance with the objectives: to reveal the key factors and ways to modify the economic downfall in Russia. The research tools include the analysis methods of scientific and information base, as well as synthesis of the obtained data into theoretical conclusions and practical recommendations. The methodological and theoretical approaches of the research are based on scientific works of domestic and foreign scholars in banking theory and practice. The Russian economy in 2014-2015 was in economic downfall, which may last a little longer than currently expected. There are many causes of the economic crisis in Russia, as well as the future consequences, though to understand how to behave in times of crisis, we still need to figure out what has led our economy to this state and is there a threat of further deterioration in economic conditions. It is believed that the main factors of the crisis of the Russian economy are imposed Western sanctions, falling oil prices, and the complicated geopolitical situation, though in reality all of the above mentioned did not give the effect, which was persecuted by western countries. The article describes the Russian government's actions that entail more negative consequences pushing country to deep economic and financial crisis. In the course of working with the article, the authors have made conclusions about the activities of the government in the area of pension reform, an attempt to change social guarantees and benefits of vulnerable segments of the population, to carry out monetary policy and subsequently its negative implications. The authors consider the actions ofthe financial block ofthe Government and the Central Bank of the Russian Federation (CB RF), which led to the devaluation of the ruble, rise in inflation and decline in production.