This is an automatic TL;DR, original reduced by 88%.

The recent outbreak of violence in Yemen may bring short-term gains for Russia's oil producers, but over the long-term, will result in disincentives for Russia to modernize its economy.

The proverbial drowning man clutches at straws, and so it was that despite the decidedly moderate reaction of the world's oil markets, the Yemen-inspired one-day price surge produced an entirely disproportionate emotional response in Russia.

Like the many hundreds of billions of petrodollars that Russia has received over the past decade, it will either burn up in the furnace of Russia's inefficient economic system, or be allocated to its beneficiaries and become part of the capital outflow from Russia.

Extended Summary | FAQ | Theory | Feedback | Top five keywords: Russia^#1 oil^#2 market^#3 price^#4 Economic^#5

Post found in /r/POLITIC and /r/geopolitics.