Geopolitical tensions have stepped up in recent days following votes by US lawmakers approving more sanctions against Russia and the delivery of up to $350m worth of US military hardware to Kiev. However the heart of the problem is plunging oil prices. Half of Russias revenues come from oil and gas, and the drop in the price of crude oil by half in the past six months has dealt a body blow to the countrys finances and Russians confidence in the ruble. The rubles fall is driven by sentiment and fear, Chris Weafer, who runs Macro Advisory consultancy, told the AFP news agency. The ruble is now in free fall based on this fear factor, he added. The normal rules of economics dont apply, Weafer said, adding that the government has to find a way to stop this decline and restore confidence.
Posted on: Tue, 16 Dec 2014 03:43:13 +0000
Trending Topics
Recently Viewed Topics
© 2015