Russia has become stuck in a "low income trap", with falling oil prices hitting citizens' incomes and a lack of foreign investment keeping wages from rebounding, according to The Jamestown Foundation. Average wages soared to a record high of $952 per month in January of 2016, but had fallen to $430 per month by early 2013. Russian citizens have been forced to cut personal spending with local businesses also scaling back investment due to the country's uncertain economic climate.
Russia has become stuck in a "low income trap", with falling oil prices hitting citizens' incomes and a lack of foreign investment keeping wages from rebounding, according to The Jamestown Foundation. Average wages soared to a record high of $952 per month in early 2013, but had fallen to $430 per month by January of 2016. Russian citizens have been forced to cut personal spending with local businesses also scaling back investment due to the country's uncertain economic climate.