So far the blood has only run in the stock market, with the Russia RTS losing around 10%.
Of course the other European markets suffered also but 'only' around 2%. This actually means that more capital was 'burnt' in the West, but of course it is far easier to absorb those losses.
More important then the Russian Market Crash was the fate suffered by the ruble:
Perhaps the most telling aspect of the rumbling was that it happened despite two powerful actions by the Russian Central Bank. They used both major tools to support the own currency. Still it got rumbled pretty badly.
1. Russia’s central bank has announced an emergency interest rate hike this morning, raising its key borrowing rate from 5.5% to 7% after seeing the ruble crash to new record lows against the euro and dollar. (copy&past from the Guardian)
2. They did also try to directly bolster the ruble at the tune of over $10BnPaweł Morski @Pawelmorski
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150bps rate hikes on an economy that was already as sick as a dog. Crimea not looking like an easy victory from here. #Russia
8:21 AM - 3 Mar 2014
So far the war was not cheap and that after all that money thrown at Sotchi.Steve Collins @TradeDesk_Steve 2 Std.
Russian C.Bank has sold over $10Bn to support
The rise in interest rates may be the bigger problem for now for most people.LukeReuters 24 Min.
What with the cost of the Sochi Olympics and efforts to prop up the rouble, #Russia has spent about 3 pct of its GDP ($61 bln)
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