The European Union and Russia are set in a race against time according to Hungarian born, billionaire hedge fund manager George Soros. Mr. Soros has pointed out several key indicators of Russia’s collapsing economy and the doom that looms for Russia’s ruling power led by Vladimir Putin. Soros has indicated that Russia’s government will be facing bankruptcy in the year 2017. This is when a sizable portion of Russia’s government debt owed mostly to foreign creditors is to mature and be due. George Soros predicts that political turmoil, and calls for Putin to step down could result should Putin’s government become bankrupt.
Despite being hit hard by economic sanctions and declining oil prices president Vladimir Putin has strong support in Russia. His support however rests on his ability to keep the financial situation in Russia stable and to gradually increase the standard of living of Russians. When oil prices tanked and sanctions were imposed for Russia’s aggression in Eastern Ukraine, Russia’s economy almost went into a depression. Intervention by the government prevented an outright depression, but given the current sanctions and low oil prices Russia’s economy and the Putin regime are set to collapse. It is only a matter of time until that happens.
George Soros believes that the only Putin can hold unto power and prevent the Russian economy from crashing it by making the European Union fall apart first. The EU has leveled some of the most harshest and most punishing sanctions against Russia that are really hurting the Russian economy. If Putin can cause to EU to collapse first, then the sanctions that are threatening to undermine Putin and the Russian economy will be gone. Putin can then also take advantage of the turmoil in Europe to negotiate favorable deals for Russian companies.
I can understand the argument that George Soros is making with regards to Russia and the European Union being on the verge of collapse. They do have opposing interests and the demise of one, would mean success to the other. I guess Soros is right that it is a race against time to see which one collapses first. My belief is that the Russians will collapse first, because their economy is weaker. All the military power and strong walk won’t help Putin if his economy has collapsed. If you want a more in depth look at George Soros’ views on Russia and the European Union opposing interests check out this article published on Project Syndicate.
To get a better understanding of George Soros’ perspective on this issue, one must have some background knowledge on Mr. Soros. George Soros was born in Budapest, Hungary to a Jewish family. He was forced to flee and was lucky to make it out alive without being caught by the Nazis. Having successfully fled to the United Kingdom, Soros managed to get an education and find work in the financial sector. Eventually Soros achieved great wealth in hedge fund management and he has become one of the world’s richest men.
When he is not managing his hedge fund called the Soros Fund, George Soros like to speak out on important economic and political issue such as the Syrian refugee crisis and the recent implosion of the Chinese economy that has since stabilized. He has founded the Open Society Foundation which promotes democracy and education around the world, particularly in formerly oppressive countries that are now experimenting with democracy and capitalism.