Russia: navigating on troubled….regional waters

Summary

The Russian situation continues to raise questions about the future of the country and the potential economic and geopolitical spillovers to other nations. The Russian economic situation can spread through the channels of trade, energy, finance and risk aversion. The high share of FX denominated loans, which reduces the margin of depreciation, will be of key importance. The situation can also feed back into the geopolitical arena, reinforcing the political and economic pressures in the region.

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