Russian markets plunge as Putin tightens Crimea grip

Military personnel, believed to be Russian servicemen, walk in formation outside the territory of a Ukrainian military unit in the village of Perevalnoye outside Simferopol March 3, 2014. REUTERS-David Mdzinarishvili

Russia paid a heavy financial price on Monday for its military intervention in neighboring Ukraine, with stocksbonds and the ruble plunging as President Vladimir Putin’s forces tightened their grip on the Russian-speaking Crimea region.

The Moscow stock market fell 10.8 percent, wiping nearly $60 billion off the value of Russian companies – more than the $51 billion Russia spent on the Winter Olympics in Sochi last month.

The central bank spent as much as $12 billion of its reserves to prop up the ruble as investors took fright at tensions with the West over the former Soviet republic.

Putin declared at the weekend he had the right to invade Ukraine to protect Russian interests and citizens.


Plugin by: PHP Freelancer
This entry was posted in Editorial, Financial and tagged , , . Bookmark the permalink.