Vladimir Putin, is the current President of the Russian Federation, holding the office since 7 May 2012. During Putin's first period of presidency, the Russian economy grew for eight straight years, and purchasing power for his people increased 72%. The growth was a result of high oil prices, 2000s commodities boom, and prudent fiscal and economic policies.
Putin has said that overcoming the consequences of the world economic crisis was one of the two main achievements of his second term as Russian President. The other was the stabilizing the size of Russia's population between 2008–2011 following a long period of demographic collapse that began in the 1990s. But the economic development of Russia experienced a significant setback due to the sanctions and the concurrent fall in the world price of oil.
The IMF has estimated that about half of the decline in GDP in 2015 was due to sanctions and Russia's ban on imports in response.
The continued financial crisis began in the second half of 2014 when the Russian ruble collapsed due to a decline in the price of oil and international sanctions against Russia. These events in turn led to loss of investor confidence and capital flight. Russia responded with its own sanctions against the West. Additionally, to compensate for the sanctions, Russia developed closer economic ties with Eastern countries. In October 2014, energy, trade and finance agreements with China worth $25 billion were signed. The following year, a $400 billion 30-year natural gas supply agreement was also signed with China.
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