“The collapse of the
Soviet Union in 1991 had many causes. None was as basic as the fall in the price
of oil, its main export, by two-thirds in real terms between 1980 and
1986. By the same token, the 14-year
rule of Vladimir Putin, heir to what remained, has been bolstered by a threefold
rise in the oil price.”
Oil is falling again,
and this week’s drop in price was severe.
Some countries that depend on the sale of oil they produce will be
squeezed on profits. “For those governments
that have used the windfall revenues from higher prices to run aggressive
foreign policies, things could get uncomfortable. The most vulnerable are
Venezuela, Iran and Russia.”
From The Economist, page 16, “Many winners, a
few bad losers,” October 25, 2014
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