Residents of Russia do not notice the connection between the reduced incomes, the crisis in the country and the annexation of the Crimea, Russian economist Dmitry Nekrasov said.
“The number of consumer loans decreased, people began to live mostly by their means. Everything can be adapted, but the number of people living below the poverty line has increased by about three million people over this period, it is significant. More importantly, in the minds of Russians for some reason there is no correlation between the seizure of the Crimea and the deterioration of the standard of living. Most Russians do not see this connection, it's just the way propaganda works, that people do not understand this link," Nekrasov said.
The expert stressed that the worsening of the standard of living was largely influenced by the fall in oil prices, rather than sanctions.
“The fall in oil prices was much more important for the Russian economy than the sanctions. Foreign trade has decreased by 40-45%, real incomes of the population have been declining for three consecutive years and, in fact, have decreased by almost 13%. Despite the fact that the economy began to grow in the fourth quarter of last year, the incomes of the population still continue to decline ... At such an oil price ($ 50 per barrel - Ed.), nothing will happen, it is stagnation, economic growth will be on rather insignificant level, up to 2%,” Nekrasov informed.
Reference: According to the Russian Federal State Statistics Service, the real incomes of Russians have been falling for three years.
Thus, in April 2017, the real disposable cash income of Russians fell by 7.6% compared to April last year, after a 2.5% drop in March, a decline of 4.1% in February and an increase of 8.1% in January.
It is noted that real incomes of Russian citizens have declined for three consecutive years - in 2016 the incomes fell by 5.9%, in 2015 by 3.2%, in 2014 the decrease was 0.7%.