The Russian economy (catch all)

[Firn]

A bit more on the capital flight from Russia, which looks like to be considerably higher then the capital inflow. Keep in mind that due to the accounting logic of the Balance of Payment some capital will naturally flow out as long as Russia continues to run a trade surplus (the other factors canceling each other out).

LONDON — Capital flight from Russia has risen sharply since the start of this year to $45 billion to $50 billion, Goldman said, predicting full-year outflows could be as much as $130 billion, or double 2013 levels.

Goldman said its calculations show capital outflows have jumped 60 percent from year-ago levels as the economy slows and the threat of Western sanctions bites. It also slashed its forecast for Russian economic growth this year to 1 percent.

Interesting to note that roughly 2/3 of the overall sum of BR's interventions was spent in the last two weeks. BTW you can see the accounting logic at work:

Goldman based its capital flight calculations on estimates of a $25 billion current account surplus in the first three months of the year and around $30 billion in foreign exchange interventions by the central bank.

On the Russian macro front:

Regardless of whether the Kremlin is irrational or simply uninformed, its policy in Crimea sends an unmistakable signal to investors: Russia's political leaders are impossible to predict. This will further undermine Russian and foreign investors' confidence and increase capital flight, which could not come at a worse time. With credit-fueled consumer spending, the engine driving GDP growth since 2010, now running out of steam, the economy is stagnating.

It is very hard to see how the Russian government can avoid a (deep) recession if the crisis continues for (months) weeks. Lots of shocks hitting the economy at the same time just as the monetary policy is forced to move into the wrong direction and fiscal policy will very likely be quite costly to finance...

[mirhond]

It is very hard to see how the Russian government can avoid a (deep) recession if the crisis continues for (months) weeks. Lots of shocks hitting the economy at the same time just as the monetary policy is forced to move into the wrong direction and fiscal policy will very likely be quite costly to finance...

Poor us.
You are still deliberately ignoring the fact that we have lived with ####ed-up economy for 15 years. Almost everyone out there understand that all this burgeous pleasantries are temporary, almost everyone either have Plan B if things become hairy, or just don't care about future. We are tempered with endless economic fails, inferior governance and suffocating aura of lies. Even the food, water and electricity rationing won't destroy this system.