English: THE GRAND KREMLIN PALACE, MOSCOW. President Putin with Iranian President Mohammad Khatami. Русский: МОСКВА, БОЛЬШОЙ КРЕМЛЕВСКИЙ ДВОРЕЦ. С Президентом Ирана Сейедом Мохаммадом Хатами. (Photo credit: Wikipedia)

President George W. Bush of the United States and President Vladimir Putin of Russia, exchange handshakes Thursday, June 7, 2007, after their meeting at the G8 Summit in Heiligendamm, Germany. (Photo credit: Wikipedia)

This is an excellent article by Ambrose Evans-Pritchard, Business Editor at the Telegraph.

via Oil slump leaves Russia even weaker than decaying Soviet Union – Telegraph.

Reading this article, the economic prognosis for Russia is very dire. However, there are other sides to Russia. President Putin and a close group of oligarchs control the power. Putin has been around on the World stage for a long time; he’s a formidable player, and most importantly he understands the weaknesses in the leading Western economies.

I agree with  Evans-Pritchard that Russia has squandered her inheritence but other countries rich in natural resources have done the same. It is only now that we can see that a sovereign wealth fund like Norway’s is best practice.

I cannot see Russia turning to the likes of the IMF. I hope that Russia will reflect and see political acomodations in exchange for economic and trading concessions.

Thoughts?