The 2008 economic crisis exposed the fragility of the Russian economy and threatened to unravel Vladimir Putin's social contract, predicated on oil export-fuelled growth and prosperity for Russians. How has the global nature of the crisis impacted the state economic policy? Has the Kremlin demonstrated a new appreciation for the need to diversify and liberalize its economy, perceiving its previous policies to be discredited? Or, threatened by a volatile global economy, will it recoil from modernization and continue its tradition of authoritarianism? The crisis constitutes a critical juncture in Russia's development, carrying important social, political and economic ramifications and challenging the state to adjust course for sustainable future growth.