The Newsmakers - Russia's spiralling economy

Russia's economy shrank 3.7 per cent last year and is projected to contract by a further two per cent this year. So why has it all gone wrong for Russia? International sanctions, rock bottom oil prices and two costly foreign interventions have all helped the slide. Last year saw an almost unprecedented austerity drive - with spending reduced by 10 per cent across the board. But analysts warn that without serious structural reforms and diversification away from oil - Russia's woes will continue. Yvette McCullough explores whether Russian President Vladimir Putin is responsible.