Skip to comments.Russian economy grinding to a halt as Ukraine crisis takes heavy toll
Posted on 03/24/2014 9:43:37 AM PDT by Berlin_Freeper
MOSCOW (Reuters) - Russia's economy is barely growing, inflation is rising fast, and capital is pouring out of the country, the Economy Ministry said on Monday, a sign that international tensions around Ukraine are already inflicting severe economic costs.
In February Russia's gross domestic product eked out growth of just 0.3 percent year-on-year, down from 0.7 percent in January, Russia's Deputy Economy Minister Andrei Klepach said.
Last year the economy grew by just 1.3 percent, far below initial forecasts, but there had been hopes that growth would rebound this year. Instead Russia's economic performance is deteriorating further as the international tensions around Ukraine lead capital to flee Russia.
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Coming to a country near you soon.
er, near us.
How many children have starved to death since the US imposed sanctions? Obama has blood on his hands...
This isn’t any news!! USSR operated this way for multiple years! Pretend to work - pretend to get paid economy.
I do believe it has already arrived. Some years ago.
Off your meds?
He took Crimea, now he has to care for it.
I think, a joke!
Yeah, you’re right. Sounds like Obamaland.
Or else the latest FSB payment arrived.
I had thought the old Soviet Union/Russian Federation had busted its horns long ago with the debacle that was Afghanistan. The Russian Mafia set up and made sure the cash flow from petroleum and natural gas was coming in, but there has been little real dynamic growth of a wider industrial base.
Now, the supply of petroleum and natural gas from the Russian heartland is under a threat of a great deal of disruption. This does not bode well for either Russia or the bulk of European countries that have come to depend on the natural gas supply.
Economies don't fare well under tyrannies...that's both East and now West.
The Ukraine is its path to European exports.
Russia tried to make an end run around Ukraine with the South Stream project, but costs have ballooned to $75B by some estimates.
Running roughshod over Ukraine is cheaper than building an expensive pipeline to nowhere.
Ukraine had three main points of access to the Black Sea: the Crimean peninsula, the mouth of the Dnieper and the mouth of the Dniester.
Russia now has Crimea. It is threatening the Dnieper in the east by massing troops, and it is threatening the Dniester in the west with its troops in Transnistria.
If it executes a pincers movement, the Ukraine will effectively be a landlocked country.
If the Ukraine tries to nationalize the Russian pipelines running through its territory in retaliation for aggression, they will hurt Russia, themselves and Europe.
Putin is playing a dangerous game and is betting that he can outlast any retaliation.
He’s gambling that Ukraine will say “Deal”.
Or satirizing the press's reaction whenever we would impose sanctions on a Middle Eastern country like Iraq. We impose sanctions at noon and the starving kids would be dropping in the street by 6 PM.