Russia in crisis: Some things matter more than money

Millions of Russians have fallen into poverty

as collapsing oil prices and Western
sanctions pushed the country deep into
recession.
But Russian officials have a message for them: "It's not all about the
money."
Speaking to CNNMoney at the World Economic Forum in Davos,
Russian deputy prime minister Yury Trutnev acknowledged the
economy was in crisis but said: "People have very different values in
Russia."
"Money is not the most important thing for people in Russia, the
country is more important than money, that's why the government has
very high level of support...people understand it," he said.
Russia's annexation of Crimea from Ukraine and strong anti-West
rhetoric have proven costly. The country has also been slammed by
low oil prices. Half of Russia's government revenue comes from energy
exports.
The economy shrank by nearly 4% last year, and the International
Monetary Fund expects a further contraction of about 1% this year. The
ruble has crashed, pushing up inflation.
Related: Russia's currency collapses to lowest level ever

Sanctions imposed on Moscow over its role in the crisis in Ukraine

have severed investment flows into the country and cut Russian
companies off from European and American finance. And a Russian
embargo on most food imports from the West has pushed prices even
higher.
Inflation hit 12.5% in 2015 while real wages kept dropping, leaving
many people much worse off.
Official statistics show that over 20 million Russians, roughly 14% of
the population, are now living in poverty. That compares with 16 million
in 2014.
But Trutnev claimed Russians weren't feeling the economic misery.
"The president and the government enjoy unprecedented level of
support... perhaps the sanctions are not affecting the Russians as they
were intended to," he said.
CNNMoney (DAVOS, Switzerland)First published January 22, 2016: 7:08 AM ET