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Ukrain Crisis Further Slows Russia


PUJA AWASTHI | New Delhi, April 27, 2014 18:48
Tags : Ukrain Crisis Further Slows Russia |

As per the latest  official estimates, Russia’s economy is hit sharply due to the Crimea crisis. The spooked investors have pulled out massive $70 billion (which is more than total of 2013) out of Russia in just three months. Economy Minister Alexei Ulyukayev revealed that the economy expanded just 0.8 percent in the first quarter from a year earlier, which is much short of expected 2.5 percent growth. Ulyukayev told the Parliament, “The acute international situation of the past two months” and “serious capital flight” were to blame.” In fact, it contracted by 0.5 percent over the last quarter. Further, 10 percent dip in the main stock index in March saw billions wiped out in market capitalization. The World Bank had cautioned in March that the Ukrainian crisis is coming at a bad time for the Russian economy, which faces fundamental problems. It had indicated that the growth rate in 2013 was the lowest in 13 years because of the global financial crisis. There seems more rough weather ahead for the Russian economy. Russian President Vladimir Putin certainly can’t ignore the consequences of his actions.

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Issue Dated: Feb 5, 2017