The Russian economy has stagnated due to a number of factors. One of the key factors is the conflict in Ukraine in which the west accuses Russia of supporting rebels who wish to breakaway from Ukraine and join Russia instead. The supposed support of Russia to rebels has resulted in crippling sanctions that have harmed the economy. Investment has dried up and actually flowed out of the country.
One figure states that up to $70 billion dollars had left Russia in the first quarter of 2014. That compares with $63 billion dollars leaving the country for the entire previous fiscal year of 2013. Clearly the beginning of 2014 has not been good for Russia. Dipping oil prices have also hurt the economy and a falling Russian ruble has made even ordinary Russians feel the sting of the stagnating economy. The ruble is the currency of Russia.
Russia’s ruble has already dropped by about 9% compared to to the dollar in the first quarter of 2013. The dropping ruble, conflict in Crimea and the Eastern Ukrainian cities of Donetsk and Lugansk have further dampened the economy of Russia.
Trouble is looming for Russia’s economy but Russian entrepreneur Alexei Beltyukov believes he has a solution. Alexei Beltyukov believes that Russia’s entrepreneurs and startups are the future of the country and the cure for Russia’s economic woes. Mr. Beltyukov is one of the founders of the Skolkovo Foundation, which is a government sponsored organization that promotes entrepreneurship throughout the country. It provides assistance to Russian entrepreneurs in the form of business consultations, funding, networking, tax incentives and technology development.
Mr. Beltyukov is an entrepreneur himself and has started numerous ventures in Russia. His startups include a car repair shop chain called Mechanicus, a fuel production company called New Gas Technologies and even a financial investment company called Endemic Capital. Alexei Beltyukov believes that entrepreneurs will drive Russia’s economy back to a boom instead of the stagnation that country finds itself mired in. He believes that the government should do more to support entrepreneurs particularly in the fields of technology and computer science. Mr. Beltyukov believes that providing assistance which he lacked when he was growing up can help spur economic growth, create jobs and make Russia more competitive and stronger on the global front. Read more about Alexei’s illustrious career at CrunchBase, and read more about his new initiative Solvy right at the source.