Recession Warning For Russia -- CNN
The crisis over Crimea could tip the Russian economy into recession this year even without trade sanctions by the West, the World Bank warned Wednesday.
The world's 8th largest economy was already slowing rapidly due to a dearth of reforms, and recent events have exposed the weakness of a model based on using oil wealth to fund big projects and pay higher wages, it said in a report.
Europe and the U.S. imposed sanctions on several top Russian officials, and one Russian bank, in response to Moscow's annexation of Crimea. They have also warned of tougher measures to come if it destabilizes other parts of Ukraine. Russia's membership of the G8 has been suspended and a summit canceled.
Investors have pulled billions out of Russian markets in response to the crisis, and the country's central bank was forced to jack up interest rates and draw on reserves earlier this month to try to stabilize the currency.
Read more ....
More News On The World Bank's Report That Russia Is Facing A Recession In 2014
World Bank looks at Russia economic downturn scenarios -- Deutsche Welle
'Confidence crisis': World Bank warns Russian economy will shrink 1.8% if Crimea crisis escalates -- RT
World Bank warns of contraction in Russia -- Gulf News/Reuters
World Bank Sees Economic Contraction In Russia On Crimean Crisis -- RTT
Crisis may see R1.6 trillion exit Russia -- iol
My Comment: The credit/financial markets are now factoring risk in their Russian loans and investments .... this is what is going to hurt the Russian economy.
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