“Putin was no economist. There are many things that he ought to have done,” said Jan Leijonhielm. “Corruption is rife, population numbers are falling year by year, there is shortage of skilled labour and inflation is high, currently twelve percent.”

“This is due to high market prices which Russia has been unable to affect. But pay and pension levels have been increased, while at the same time the rising food prices have been capped. Remove the cap and there could be a ‘ketchup effect’”.

In a couple of years the flow of oil will begin to decrease, as is already the case for gas. Russia already imports gas which is subsequently exported to the West.

And what can Medvedev do?

According to Jan Leijonhielm, he is saying the right things but his past record speaks another language. Medvedev has himself helped to pave the way for today’s problems and he is a prisoner of the system. He is unable to combat corruption, there are too many in high places who are dependent on it.

At the seminar, American and British experts painted a gloomy picture of the future for Russia, a future in which economic crisis threatens and one has a government which is incapable of handling it.