By Jacob Gronholt-Pedersen
Russia’s so far unsuccessful efforts to fight inflation, especially of gasoline prices, may turn into a major drag on Russia’s investment case this year, on top of presenting a setback for the ruling tandem, Prime Minister Vladimir Putin and President Dmitry Medvedev.
Russian leaders last week were faced with the embarrassing news of gasoline shortages in the world’s biggest oil-producing country. The supply shortage had been building since February, when Mr. Putin ordered oil companies to keep a lid on gasoline prices, which had soared in the wake of political unrest in the Middle East. This prompted oil producers to cash in on higher prices from exports instead of selling gasoline at artificially low prices at home.
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