Russia’s Kudrin quits – but how will he return?

The dramatic – some would say theatrical – exit of Alexei Kudrin as Russia’s finance minister couldn’t have come at a worst time. The world economy is incredibly fragile and oil prices are in flux. But is Kudrin, highly respected for his fiscal policies and a member of Putin’s inner circle, merely pushing for promotion?

With the ruble slumping to a 28-month low yesterday, there are signs the market is worried over the loss of a finance minister who prudently curbed Russia’s budgetary excesses and far-sightedly built up its oil wealth funds. “Kudrin’s resignation will be a big blow for the Russian economy – experts are already forecasting a new wave of capital flight, a fall in the ruble rate and inflation growth,” lamented the daily Vedomosti.

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While Kudrin’s absence won’t affect the Russian economy hugely in the short term, one can see how an equally cautious financial tsar would be needed in coming years to curb the likely extravagances of yet