STEPPING THROUGH MOSCOW

SOVIET PARADISE

четверг, марта 20, 2014

Potential Blowback on Investments in Russia after Crimea

This linked article provides a view on the potential impact stronger state controls in Russia's economy in addition to the recent Crimea take over might be having on investors and major companies, as well as consumers, in Russia. At this stage, it is too early to separate out the specific impact on specific factors from the fallout over Crimea on Russia, her producers and consumers. For the past several years, capital outflows have been trending upwards. This has probably been in part due to a weakening in various aspects of Russia's business climate, perceptions and expectations changing over the country's potential, but also the economic situation in the West; many investors and western banks have been pulling finances out of riskier markets globally to shore up reserves to deal with the recent financial crisis.

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