The Longest Recession In Recent History Hits Russian People: Now, Even Savings Become A Luxury

Based on the recent polls, most Russians agree that they need to save up money. And yet only 7% of them are able to save up any money, and only 19% identify as middle class.

The only kind of bank deposits that are growing in Russia are large ones — from 1 million rubles and up ($15,700) — in a country with the median wage being 30,000 rubles (this is how much it would cost to rent a small apartment in Moscow). This is not surprising — the sales of luxury goods have gone through the roof in the last four years, with the country's richest getting richer. The mid-range and cheap retail sales have, meanwhile, dropped, with the eroding middle class trying to save up every ruble and cut their daily spendings.

These last four years of recession show that the first "golden" decade of Putin's rule was not the result of some economic miracle, but of an oil boom. Once that fuel ran out, it became evident that the country's economy hasn't adapted to the modern world, and that there's precious little hope for a safe way out of this crisis.