Moscow is the most expensive city in the world, like Tokyo before the Nikkei bubble burst. A taxi from Domodedovo airport to the Kremlin costs $170 (£86). Property in Ostozhenka trumps Chelsea. Space fetches $30,000 a square metre. This is the curse of commodity wealth, the Dutch Disease that eats at the competitive foundations of an economy and incubates a parasite culture. No doubt Russia''s scientists, engineers, and cyber talent, will enrich the country, but first it must overcome the toxic effects of oil at $90 a barrel.
We can no longer afford to buy Russian equipment, said Yevgeny Ivanov, head of Polyus Gold. The prices here are one and a half times higher than abroad so we''re having to break our rigid rule and turn to foreign-made machinery. It is bad news for Russian firms. The commodity super-cycle is catching up with us through higher prices. It is a disheartening picture, he said.
We can no longer afford to buy Russian equipment, said Yevgeny Ivanov, head of Polyus Gold. The prices here are one and a half times higher than abroad so we''re having to break our rigid rule and turn to foreign-made machinery. It is bad news for Russian firms. The commodity super-cycle is catching up with us through higher prices. It is a disheartening picture, he said.
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