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...weeks, as the stock market cratered and some private Russian banks wobbled, the official Kremlin line was: "This is primarily an American issue." Finally, on Nov. 20, Putin admitted that Russia, too, was in trouble. Announcing a $20 billion economic-stimulus package and an increase in unemployment benefits, he said Russians were asking "a fair question" when they wondered about what was happening. His answer: "We will do everything, everything in our power ... so that the collapses of the past years should never be repeated in our country." Says Alexander Kliment, a Russia analyst at the Eurasia Group...

Author: /time Magazine | Title: Russia's Big Chill | 12/11/2008 | See Source »

...Trouble with Putinomics It's difficult to get an accurate picture of the economic disruption in Russia, where reliable information and open public discussion remain rare. This is the other side of Putinomics: TV and many major press outlets are firmly under state control, and media outlets that aren't have become nervous about printing the truth. As a result, the very word crisis is only now starting to enter the official vocabulary, and even then in a relatively muted...

Author: /time Magazine | Title: Russia's Big Chill | 12/11/2008 | See Source »

Since that speech, Putin has begun talking a little more openly about the issue. In his Dec. 4 television appearance, the first question to him came from Dmitry Salnikov from the village of Tirlyansky, near the Urals region of central Russia. "We are a young and currently jobless family," said Salnikov. "Most locals are also unemployed because they used to work for the metallurgical sector. What are we supposed to do in this situation?" Putin's vague answer: "Private and public authorities will have to draft an entire range of measures in an effort to preserve jobs...

Author: /time Magazine | Title: Russia's Big Chill | 12/11/2008 | See Source »

...Dream It's Over It wasn't meant to turn out this way. The new Russia was supposed to replace poverty and money worries and grumbling mothers with places like Rusfinance, a Moscow call center that transports you from the gritty streets and auto-parts stores outside into a world of cheery beige furnishings, swirling red-and-gold patterns on the walls and easy credit. Here, 450 people - mainly women in their 20s - sit side by side in booths and field calls from Russians wanting to borrow money. Most of the time the answer they give is a resounding...

Author: /time Magazine | Title: Russia's Big Chill | 12/11/2008 | See Source »

...found elsewhere. The Kaluga region to which Lyudinovo belongs continues to draw in foreign investors, including automakers. VW has to date invested about $350 million in an assembly plant, and is producing about 320 cars per day. Peugeot is not far behind. Dietmar Korzekwa, VW's group representative for Russia, says the automaker is continuing with its current growth plans. In part, it's betting that if the Kremlin raises import taxes on autos, as it has suggested it might, it will become more advantageous to manufacture in Russia...

Author: /time Magazine | Title: Russia's Big Chill | 12/11/2008 | See Source »

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