The reason for the problem that officials most frequently cite, and that President Vladimir Putin mentioned in his most recent address to the Federal Assembly, is a combination of adverse external factors such as the global economic crisis, the drop in oil prices, Western financial sanctions and the economic slowdown in China. However, economic growth began slowing significantly as early as 2013. At that time, GDP was growing by only 1.3 percent annually, while oil prices consistently surpassed $100 per barrel. Even a rise in oil prices would not solve the economic problems that Russia is currently facing.
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