Russian Economy Facing Crisis

Global Business

As Ukrainian commandoes moved to capture government buildings occupied by pro-Russian gunmen in eastern Ukraine economists in Moscow warn of a possible capital flight from Russia.

Russian Economy Facing Crisis

Russian Economy Facing Crisis

As Ukrainian commandoes moved to capture government buildings occupied by pro-Russian gunmen in eastern Ukraine economists in Moscow warn of a possible capital flight from Russia.
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The Russian government admits that over 60 billion dollars has left the country so far this year. The ruble has lost around nine per cent of its value since January. Yet some economists say the Russian economy can still expand.
But you won’t hear such optimism on the streets near the country’s financial houses. Some financial analysts say those fears will only worsen if Washington and the EU impose more sanctions.

Even senior government officials are beginning to acknowledge that Russia’s economic problems are beginning to stack up.

Russian Prime Minister Dmitry Medvedev said on Wednesday that the country’s economic situation is now very complex, in part, because of the sanctions imposed over Ukraine. He said consultations that he’d held about the country’s economic outlook did not leave him with positive emotions.