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Taking stock of the protests in Russia

The waves of protests that have taken place across Russia in recent weeks pose the biggest challenge to President Putin in close to a decade and have put a risk premium on the ruble. The government is likely to loosen fiscal policy to boost its support, which would help the economic recovery in the next few quarters. However, the government’s heavy-handed crackdown reinforces our pessimistic view about the economy’s longer-term growth prospects.

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