Stock in Russia have fallen by 2 percent looming on the upcoming Crimea vote. Also The Ruble has fallen to an all time low of 36.7 to the American dollar. This has all happened because of the vote on whether Crimea should become part of Russia or stay part of Ukraine. The US and Europe has said this vote is illegal. The threaten to put travel bans and freeze assets in Russia depending on the outcome of the vote. 33 Billion dollars have been taken away buy investors and that number could increase up to 55 Billion depending on the vote. Russian economy is predicted to grow less the 1 percent in this year and may not even grow at all. Last year it only grew 1.3 percent which was down from 3.4 percent in 2012. All together it looks like this vote is killing the economy in Russia and with the spot light shining bright on the nation much more investors may put their money in different areas instead of the Russian economy. We will see how everything turns out after this highly debated vote.
http://money.cnn.com/2014/03/14/investing/russia-crimea-markets/index.html?iid=SF_BN_River
It's interesting that the US gets much of a say in if this vote is actually illegal or not, as I feel Europe should be mediating this more so. Overall, this will effect Europe more than the US. If Russia is having such a difficult time with their economy, I don't think that they should be trying to merge Crimea with them; Russia needs to figure out exactly what is going on with their economy, stabilize it, and then they can consider trying to add more to their country if they really want to.
ReplyDeleteI believe that the US and European stance are legitimate. This is because Russian and the West signed a treaty promising they will respect the territory of Ukraine, and it is legal for a province to hold a voting process to secede to Russian. On top of the fact that before the vote was held Russian troops have already taken over Crimea(may be a forced vote). This is crucial because of the major impact it will have to Ukraine economic growth and sustainability.
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