Anne Garrels reported her thoughts on the soaring prices of oil and metals in the Russian economy over the last six years and how this instability is largely responsible for the problems in the Russian economy now, though, she maintains, the economy itself is quite strong.

Since May the values of shares have fallen about 50%, though many analysts say the Russian economy still remains resilient. Both President Dmitri Medvedev and Prime Minister Putin have continued trying to assure foreign investors that the Russian economy is strong despite recent issues.

The government recognizes that the Russian economy is to dependent on commodities, though the oil industry with its soaring revenues has amassed a huge reserve cushion. Many Russian economy analysts feel that the nation now has a balanced budget and will continue to grow at a rate of about six percent.

That said more conservative analysts of the Russian economy say this isn’t enough and, as Vladmir Tikhomirov, senior economist at Uralsib Financial Corporation says, “It’s not enough to make fundamental changes to the economic structures. Russia must have to be a more competitive and efficient economy.”

Tikhomirov goes on to say that the Russian economy is in need of drastic reforms, and that this is not happening yet. The new president, shortly after gaining power turned almost immediately to the Georgian war and military concerns, and more recently is finally showing some interest in the Russian economy. President Medvedev’s latest statements include the notion that Russia does not want to isolate itself, or the Russian economy, from the rest of the world.

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