Skip to comments.Russia counts economic cost of Crimea intervention
Posted on 03/30/2014 2:57:46 PM PDT by Berlin_Freeper
Moscow (AFP) - Russia has started counting the cost of seizing Crimea from Ukraine to its already stuttering economy, anxiously hoping that the West will refrain from implementing a second wave of sanctions that would cause even greater damage.
Moscow, already excluded from the G8, is planning for at least economic semi-isolation from the world for the next years with President Vladimir Putin this week saying Russia should create its own credit card system.
Western sanctions have so far only imposed visa bans and asset freezes on senior officials -- some close to Putin -- but the fear of further action hurting the wider economy is already causing damage with the stock market down 6 percent in March.
The most immediate hit has been on capital outflows which are estimated by economists and officials to have surged to $60-70 billion for the first quarter, more than for all of 2013 combined, as investors took fright at the uncertainty.
Russian Economy Minister Alexei Ulyukayev last week became the first top official to admit the Crimea intervention would badly hit GDP, slashing to ribbons the government's previous 2014 growth estimate of 2.5 percent.
He said growth would be a measly 0.6 percent in 2014 if capital flight was around $100 billion for the full year, a figure that some economists see as wildly optimistic given the current trends.
The economy would contract by 1.8 percent if capital flight reached $150 billion for the year due to a projected eight percent decline in investment, he added, echoing a prediction by the World Bank.
(Excerpt) Read more at news.yahoo.com ...
A lot of wishful thinking going on in the West these days about Russia.
Even if there is some economic downturn in Russia, what happened in Crimea will not be reversed. Also over the long term given its vast resources, the economic outlook is better for the average Russian than the average Frenchman, Italian Spaniard and possibly Briton.
The Battle of Tsushima, it Cost the Japanese Many Sailors their lives, but look what it won their country.
An Epic Victory and an Empire that would last another Half Century.
Putin Gets the Black Sea port Firmly under his control.
Now, with that Said, we can make the Russians Hurt from this. If we had a Thinking American in charge, this would be the final wake up call for Drilling for our NatGas and other Fossil Fuels. This should be the Harbinger for a new American Energy Renaissance, a rally point for Domestic Energy.
I will Call it the Cruz-Palin Doctrine.
What we have now is the Ubama Doctrine of Playing Civilization 3 with your Government set to Communist. While Putin is Playing Global Thermonuclear War and we see who is winning.
It's nothing but a load of Putin бык дерьмо!!
A lot of wishful thinking going on on FRee Republic by the Putin crotch sniffers.
What cost? Cheapest land grab, with access to a warm-water port, the Russians could have ever claimed. So they did a little chicanery to gain effective political control of the Crimea, is that different than what goes on in a lot of elections right here in the US, where Chicago hijacks the rest of Illinois?? Or Seattle hijacks the rest of the state of Washington?? Or LA and San Francisco hijack the rest of California??
Ineligible voters, fraudulent vote counts, physical occupation of the premises when the votes seem to be going against the True Way, including intimidation of the duly elected representatives already in place??
Nothing to see here, folks, just doing business, doncha know.
Right. Because a country full of drunks with nothing to offer the world but natural resources is going to be so prosperous any day now...
Let’s see if they can raise their male life expectancy from the pathetic 64 years of age they get now towards the European 80 years before we start talking about how great things are or are going to be for the average Russian.
Russia controls a lot of energy, but the USA controls the worlds’ financial system. It will be an interesting stand-off.
Maybe they will try printing money. Worked for US.
Russia’s GDP is only twice what we spend on the worthless federal Department of Education and we have twice their population.
For all those who listen to too much MSM about Russia is getting ready to invade the Ukraine. I’m still chuckling. They probably broke the bank bringing troops to the border although NBC sent a news crew over there and couldn’t find any. :-)
Remember AFP is socialist France and in this instance is unable to distinguish cost from investment.
Crimea is not an expense but a capital assset
Yeah, those natural resources (oil, natural gas, timber, coal, wildlife, precious metals, etc.) are oh so piddly...
It takes a handful of people to extract those resources, which is why there are like 20 Russian multi-billionaires, including Vlad The Inhaler, and everyone else is a drunk.
Ban the importation of Russian vodka. The Russian producers probably have as much influence with Putin as any business sector.
Polish Wódka is better anyway.