REUTERS/POOL New
The economic upturn is being driven by the improved external environment, and the region will remain vulnerable to a deterioration of global conditions. Russia is not yet able to serve as an engine for regional economic recovery, and official financing remains critical to several economies in the region. Lingering sources of domestic economic weakness, increasing political uncertainty, and centripetal pressure from the EU and China will limit Russia's ability to exercise a coherent and effective strategy towards its neighbours.