AND WE JUST KEEP CRUSHING THOSE HOPES:

Signs of panic and dysfunction are everywhere. Finance Minister Anton Siluanov has demanded yet another round of 10 percent budget cuts. (A similar reduction occurred in 2015). Otherwise, Siluanov warns, Russia faces a repeat of the 1998-99 financial crash and possible default -- not exactly reassuring words from the man in charge of Russia's economic policy.

The 2016 budget, meanwhile, already included catastrophic reductions in education, health care and social spending. How will the Russian public react to additional cuts? No one knows. To raise revenues, the Kremlin is considering selling off shares in large state companies, including Rosneft, Sberbank and Aeroflot, while still maintaining majority control. Moscow has long vowed never to sell these shares in a depressed market, but that is exactly what would happen under current economic conditions.

The relevant government ministries, however, do not appear to have cleared these privatizations with Putin. He just demanded that the purchasers of these assets must be subject to Russian law -- not offshore entities. This sharply reduces an already limited pool of potential buyers.

Putin also said there would be no fire sale of state assets. Therefore, not only has Putin and his government most likely lost a much-needed infusion of cash, they also have looked divided and unsure of themselves in the process.

Several Russian government ministries are also busy preparing an anti-crisis plan to bolster certain national industries, which almost sounds encouraging until one considers the fate of the 2015 anti-crisis plan. Only 17 of the 60 programs were fully implemented last year, according to Russia's Audit Chamber, leaving billions of rubles unspent.

There is little reason to believe that the 2016 stimulus plan -- with less money available -- will fare any better than its predecessor in reviving the Russian economy.

The private sector remains in no position to pick up the slack. At a recent forum, inauspiciously titled "Small Business: A National Idea?", Putin answered the question with a resounding no. He provided small businesses no new tax breaks or any relief from crippling double-digit interest rates. He pointed them instead to regional governments for support, many of which are on the brink of default themselves, so in no position to lower taxes.

The Russian government really has no good economic options other than hope.

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