In the decades since the Soviet Union collapsed, Russia forged important trade and investment ties. With alarming speed, events of the past week have shattered those links.
and imports of food and machinery. The collapse of oil prices in the 1980s decimated the nation’s export revenue and exacerbated product shortages at home, helping trigger the 1991 Soviet collapse.Russia entered a long period of turmoil after the end of the command economy, buffeted by hyperinflation, organized crime and the corrupt auction of state-owned enterprises for a fraction of their worth to President Boris Yeltsin’s political supporters.
“Many sectors were open, investment was flowing, the economy was growing at 7 percent a year, and many Western companies benefited from that time,” he said in an interview. After that, many foreign companies already present in Russia continued reinvesting their profits, but few new investments were announced, Aleksashenko said.
Norway’s state-controlled oil company and sovereign wealth fund announced plans to divest their Russian assets. Taiwan Semiconductor Manufacturing Co. and other computer chip manufacturers began halting shipments to Russia, depriving manufacturers of crucial electronics components.
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