Capital outflow from Russia has already reached $70 billion this year, according to the country’s Economy Ministry. This amid souring relations with the West over the crisis in Crimea. However, some officials in Moscow insist sanctions on Russia will have little impact on its economy.
Russia’s incorporation of Crimea has cost little in terms of military losses but economically it’s already proving damaging. The U.S. and EU have so far steered clear of sanctions beyond carefully targeted high ranking officials and a bank close to President Vladimir Putin. The sanctions don’t concern some members of the Russian government who voted to allow intervention in Ukraine. Others, however, are worried as sanctions stoke capital flight and investors become wary of possible legal ramifications from the political crisis over Ukraine. Tom Barton reports.