On Tuesday, Russia’s currency, the Ruble, faced a record low against the US dollar after penalties were made by the US and the European Union for their recent actions on Ukraine. The sanction consisted of blocking Russia’s major companies off from Western financial markets. As a result, Russia’s currency dropped more than 1 percent to 38.30 rubles to the dollar and within two days, lost nearly 2.7% of its value. With this penalty against Russia in action, Russian economist Alexi Kudmin claims that the country may face a recession.
I never thought that Russia’s actions against Ukraine would lead to a situation as serious as this. Because Russia’s basically been cutoff from their essential markets, this limits their opportunities to invest in many companies, which will most likely send them into a recession for the next few years. At this point, I think Russia’s really got a make a move and step up some sort of peace process with Ukraine so that some of the sanctions can be uplifted. Otherwise, this may take a huge toll on their economy later in the future. Already, the Kremlin’s offered to reimburse money that companies have lost. In addition, many investors have withdrawn billions of dollars worth of investments.
source (including picture):
http://www.cbc.ca/news/business/russian-ruble-drops-to-lowest-level-on-record-1.2768009