Wednesday, March 26, 2014

Who else is sanctioning Russia

Who else is sanctioning Russia? Investors (+video)

Investors have pulled billions of dollars out of Russia, fearing further fallout from Moscow's annexation of Crimea.
Until now Moscow has met Western sanctions, imposed in light of Russia’s actions in Crimea, with a shrug. The measures' costs are far outweighed by the
benefits of bringing Crimea home, the Kremlin has said, and the country’s suspension from the Group of Eight was nothing to be concerned about.


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But Russia's investors are not as sanguine.
Rattled by the country's increasingly erratic and bullheaded moves, investors have responded with the greatest capital flight from Russia since the financial
crisis of 2008. The sting of the exodus might not be immediately apparent to Russian consumers, but it will compound the shocks that Russia’s oil-fueled
economy already has to absorb — not least among them the costs of annexing the woefully underdeveloped Black Sea peninsula and reviving a slowing economy.
In the first three months of 2014, capital outflow from Russia amounts to $65-70 billion, Andrei Klepach, the deputy economy minister, said Monday.
“Probably closer to $70 billion,” he added.

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