The stark social cost of Russia’s economic crisis was exposed this week when new statistics revealed a 30% increase in the number of people living in poverty.
According to Russia’s state committee on statistics, the figure for Russians living below the poverty line went up to 24.5-million during the first three months of this year — a steep increase from 18.5-million by the end of 2008.
The rise follows years in which Russians saw their living standards improve under the former president Vladimir Putin (now prime minister), largely thanks to a buoyant oil price, and Russia’s status as the world’s largest gas exporter. This improvement has now come to a juddering halt.
Instead, more Russian families than ever before are sliding into poverty, defined as an adult income of less than 5 497 roubles (R1 356) a month.
Russia has suffered as much as any major economy from the global crisis; its economy shrank by about 9.5% in the first quarter of this year.
It has pumped millions of dollars into bailing out its banking sector and helping strategic businesses. —