Russian power play risks full-scale investor exodus

Russia's power play for Ukraine's Crimea region is putting to flight foreign stock and bond investors, who are rattled by the Kremlin's overruling of the country's economic interests in favor of its military ambitions. Russia's half-trillion dollars in central bank reserves mean its creditworthiness is not in doubt, and political risk has always been part of the game while investing in Russia. Yet the move on Crimea, which has earned Moscow global censure and the threat of Western sanctions, will deliver a blow to an already-faltering economy, with U.S. Secretary of States threatening "very serious repercussions". And perhaps more crucially, it will further deepen investor mistrust of Russian institutions.

via Business News - Yahoo Finance http://ift.tt/1n2n0Jc