One of Russia's main exports is oil, and the decline in price has greatly reduced Russia's trading power on the international market. The Current Conditions According to The Economist article "Money can't buy me love", since defaulting on the $40 billion dollars in bonds last August; the government has fallen even further behind on $1.5 billion due on its dollar debts left over from its days as the Soviet Union. Without international help, they will be unable to pay back the $4.8 billion due this year to the IMF and World Bank. Inflation is expected to rise to 100%, and may rise even higher if the government begins to print money to meet demands such as paying off wage arrears. The Economist article "Russia, financial outcast", notes that many teachers, who earn $20 a month in Russia, have not been paid in over a year. The fledgling Russian middle class has essentially been destroyed during this process. More over, rampant social problems have accompanied this economic decline. Russia currently has nearly the highest murder rate in the world, male life expectancy has fallen to 58 years, and the population is declining at a rate of 800,000 per year. .
There now exists a high distrust of Western business practices and ideals, as well as a general distrust of foreigners in general. Many Russian politicians believe that the Western-backed practices such as budgetary stringency and privatization are to blame for Russia's current problems. Prime Minister Yevgeny Primakov is backing off on reforms and any policy that presents economic risk. The West similarly is dramatically scaling back investments in Russia, both in terms of scope and dollars. In the past, financial support for Russia from the West has been forthcoming. In light of the recent defaults, today Western investors and organizations are far less anxious to invest in Russia without deep fundamental changes in the way Russia is governed.