Part 3/9:
To understand the implications of today’s energy crisis for Russia, one must consider the Soviet Union's economic trajectory. In the post-World War II era, the Soviet Union was often hailed for its unprecedented growth and was even viewed as a viable alternative to capitalism. This growth, however, was intricately linked to global oil and gas revenue, which surged as countries rebuilt after the war. The Soviet leadership believed they could project strength and stability by depending on high energy prices.
As history unfolded, this reliance proved precarious; the sudden drop in energy prices in the early 1980s caught the Soviet Union off-guard, leading to economic disarray. With no diversification in their economic foundations, they found themselves overextended and unable to recover.