Weakness in the midst of Russia's strength - by Stefan Wagstyl
Ten years ago this month, the Russian financial crisis hit world markets. A decade later, everything appears to have changed. Russia is booming, its debts repaid, its foreign currency reserves climbing and its hotels full of Western business people. Russia's strongest card is its role as an energy supplier, notably to the European Union. But energy is a double-edged sword. The EU relies on Russia for over 25 per cent of its gas, but Russia depends on the EU for over 60 per cent of its gas revenues. Poor east European countries without suppliers are vulnerable, but not the EU as a whole.
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