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Putin Promises to Help Sliding Russian Economy

With many paychecks weeks behind, crisis reminds nation of '90s collapse

By Nick McMaster,  Newser Staff

Posted Nov 21, 2008 2:01 PM CST

(Newser) – Vladimir Putin proposed steps yesterday to stabilize the Russian economy as layoffs and deferred wages cause rising insecurity about the nation’s finances, the Wall Street Journal reports. Russian firms now owe $145 million in delayed wages to 300,000 people, and those figures may actually be higher—a fifth of poll respondents said their wages weren’t being paid on time.

Putin yesterday told a party gathering he’d “do everything,” starting with lowering corporate taxes and raising unemployment payments, to prevent a repeat of the 1998 economic collapse. Millions of workers were not paid for several months in that crisis after the government defaulted on its debt and the ruble plunged overnight.

Russia's central bank said Wednesday it had spent $57.5 billion propping up the ruble in the last two months.
Russia's central bank said Wednesday it had spent $57.5 billion propping up the ruble in the last two months.
Russian Prime Minister Vladimir Putin addresses the United Russia Party Congress in Moscow yesterday.
Russian Prime Minister Vladimir Putin addresses the United Russia Party Congress in Moscow yesterday.   (AP Photo)
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I keep going to work because I don't want to lose all the money I've earned. I'm hoping I might get paid before the New Year.
- An advertising executive from Moscow who said she hadn't been paid since September.

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COMMENTS
Showing 1 of 1 comment
Guest
Nov 21, 2008 2:29 AM CST
The workers of the proletariat are ready to impose true communism on a wayward country.

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