THE CAUSES OF THE RECESSION: SANCTIONS, OIL PRICES AND NECESSITY OF INSTITUTIONAL REFORMS
The article discusses the main causes of current stagnation of the Russian economy. After ana-lyzing such factors as the Western sanctions and dropping oil prices there is developing a system-atic reason that is the old model of economic growth that Russia has been uses. There are develop-ing possible explanations why oil prices dropped and its relation with political and economic factors of the world economy. The economic consequences of Western sanctions are examined in the totality of the circumstances of the struggle of Russia for the preservation of Russia's historical and civilizational space. There are some features explaining the dynamics of oil prices and the prospects for its growth. It discusses the factors impeding the pace of institutional transformations on the formation of innovative economy in Russia. There is analysis of factors that stimulate and destimulate the creative part of population to get high quality of work, labor ethics and their rela-tions with oil-based and innovation based models of economy. It is stated that improving the quality of legislative norms on the formation of public institutions is possible through multilateral economic analysis and transformation of ownership relations, including analysis and conversion of the Institute of labour, ensuring the realization of the property of the employee - labour and compensation for its factor income - wages Board.