BNP Paribas says Russia no longer has enough reserves to cover external debt and enters this crisis ‘twice as levered’ as it was before the Lehman crash
Central bank data show that a blitz of currency intervention depleted reserves by $26bn in the two weeks to December 26, the fastest pace of erosion since the crisis in Ukraine erupted early last year.
Credit defaults swaps (CDS) measuring bankruptcy risk for Russia spiked violently on Tuesday, surging by 100 basis points to 630, before falling back slightly.
Markit says this implies a 32pc expectation of a sovereign default over the next five years, the highest since Western sanctions and crumbling oil prices combined to cripple the Russian economy.
Russian parliament’s lower house speaker said those considering the Eurasian Economic Union a threat only confirm that a new and serious geopolitical player is indeed emerging in the world
ASTANA, November 24. /TASS/. Around 40 states have plans to establish a free trade zone with the Eurasian Economic Union (EEU), the speaker of Russia’s lower house of parliament, the State Duma, Sergey Naryshkin, told an international conference in Kazakhstan’s capital Astana on Monday.
“Five countries of the Commonwealth of Independent States (CIS) have already made a Eurasian choice, and another 40 countries across the world have officially voiced their wish to set up a free trade zone with our integration association,” Naryshkin said. Continue reading
Putin’s ability to ‘outfox’ the West also comes from strong-arm tactics and both a combination of an incompetent American leadership, as well as arguably complicit — hence, more ‘flexibility’ from Obama in his second term.
In one of his many foreign-policy successes this year, Russian President Vladimir Putin has used power politics and blackmail to bring Ukraine back into Russia’s sphere of influence. But what is the Kremlin leader’s secret to success?
“We know,” Kirill said, launching into a hymn of praise for Putin, “that you, more than anyone else since the end of the 20th century, are helping Russia become more powerful and regain its old positions, as a country that respects itself and enjoys the respect of all others.” Continue reading