Large economic crisis hits Russia - Rouble in freefall

[Scarlett.]

http://news.bbcimg.co.uk/media/images/79773000/jpg/_79773967_025139124-1.jpg

Russia's Central Bank has raised interest rates to 17%, but the rouble has continued to plummet, prompting fears of economic crisis.

Russians are reminded of the dark days of 1998, when President Boris Yeltsin's government defaulted on its debt. But how severe are the problems and is there a way out?

What has gone wrong?

Russia relies on oil and gas for half its tax revenue and needs the price of a barrel to be at $100 to balance its books. Instead, the price is closer to $60. The value of the rouble has plummeted pretty much in tandem, leading to a sense of panic in the markets.

Even before Russia's annexation of Crimea from Ukraine, Russia's economy was in trouble. But then came Western sanctions - and Russia's counter sanctions - which have made things worse.

Read more at BBC News (http://www.bbc.co.uk/news/world-europe-30492505)

Apple halts sales in Russia amid Rouble Turmoil
BBC News (http://www.bbc.co.uk/news/business-30510969)


Live updates via The Telegraph (http://www.telegraph.co.uk/finance/economics/11298312/Russian-economic-crisis-live.html)

[arista]

yes Russia can take it

[Northern Monkey]

Good

[Livia]

Hmmm... Russia is dangerous when its hungry. Wasn't the old Cold War saying, pray the Russian harvest doesn't fail?

[arista]

Hmmm... Russia is dangerous when its hungry. Wasn't the old Cold War saying, pray the Russian harvest doesn't fail?



Yes maybe another ex nation to merge

[Nedusa]

Congrats to the West, constant tinkering with Ukraine, encirclement by NATO, collapse the oil price, force painful sanctions on Russia and stand by as their currency collapses .... Yay that'll teach them ruskies.

Way to go just destabilise the biggest most heavily nuclear armed country in the world .

This is not going to end well for Russia or the US ... And certainly not Europe.



.

[Creggle]

Ya think Russia is going to start nuking people because they face an economic crisis? :joker:

[Nedusa]

No , Russia won't but what if the govt disintegrates and Chechen soldiers get old nukes , wow now that's some Suicide bomber...



.

[Creggle]

No , Russia won't but what if the govt disintegrates and Chechen soldiers get old nukes , wow now that's some Suicide bomber...



.

I'm surprised terrorists can't get nuclear weapons anyway :omg:

[kirklancaster]

I'm surprised terrorists can't get nuclear weapons anyway :omg:

When the 'Iron Curtain' fell, stolen ex-Soviet Army weaponry was being sold on the International Black Market to all bidders - everything from missiles to hand guns. So if Russia did go into melt down because of a total economic collapse, and the Chechen's did get hold of nukes, then we'd all be fecked Creg, because Chechen militants are already part of ISIS.

Kirk toddles off starts writing letter to Putin offering to lend him £50.00 interest free. :hehe:

[Northern Monkey]

I'm surprised terrorists can't get nuclear weapons anyway :omg:

As long as they don't get missiles to launch them on.If America detects one of those things coming towards it.......Oh boy.Bye bye world.

[lime]

South African rand is also at an all time low.Eskom is a mess.Through work my husband and myself have been in Sierra Leone recentetly and the chances of being able to charge your phone/laptop in Sierra leone are more possible than in SA.What's worse is the fact that SA received a major bailout from China which we have two yrs before we have to repay...our economy is worse now than before this bailout so I have no idea how apart from Rhino horn we are going to repay this....Zimbawbe here we come!

[Kizzy]

South African rand is also at an all time low.Eskom is a mess.Through work my husband and myself have been in Sierra Leone recentetly and the chances of being able to charge your phone/laptop in Sierra leone are more possible than in SA.What's worse is the fact that SA received a major bailout from China which we have two yrs before we have to repay...our economy is worse now than before this bailout so I have no idea how apart from Rhino horn we are going to repay this....Zimbawbe here we come!

D:I hope you're joking...

I'm sure you have other resources to exploit?

[arista]

Ya think Russia is going to start nuking people because they face an economic crisis? :joker:



No we are not ready for WW3

[lime]

D:I hope you're joking...

I'm sure you have other resources to exploit?

Hmm....I was being sarcastic Kizzy and mentioning what the Chineese love about my country..I left SA in '99.Not sure why you seem to be suggesting that I would be exploiting any resources we have/had??

[lostalex]

OOOPS... lol

remember when Putin was saying a few months ago that sanctions from the west were completely meaningless? lol. lying sack of sihit.

[Kizzy]

Hmm....I was being sarcastic Kizzy and mentioning what the Chineese love about my country..I left SA in '99.Not sure why you seem to be suggesting that I would be exploiting any resources we have/had??

Ah right sorry, I wasn't suggesting you personally were exploiting anything. :)