The IMF (International Monetary Fund) has basically said with all the sanctions on Russia, that Russia is now in a DEEP recession. Now if true, this will make it very hard for Russia to trade for War. Iran and others have been warned about trading with Russia. So, looks like these sanctions are biting hard! Facing an estimated £30 Million pound bill so far ($50 Million Dollars) this could push the Russian Republic to the brink of Civil war as people will start to go hungry and less medication and more. Links below as usual
Russia is “experiencing recession now” because of damage caused by the Ukraine crisis, the International Monetary Fund (IMF) has said. The fund, which cut its growth forecast for Russia, said $100bn (£59bn) would leave the country this year. Antonio Spilimbergo, the IMF’s mission chief in Moscow, said international sanctions were damaging the economy and threatening investment. Russia’s economy contracted in the first three months of this year. But Mr Spilimbergo said he expected that to continue.
“If you understand by recession two quarters of negative economic growth, then Russia is experiencing recession now,” he added. “The difficult situation and especially the uncertainty surrounding the geopolitical situation… and escalation of sanctions are weighing very negatively on the investment climate.” The IMF cut its 2014 growth forecast for Russia to 0.2% from 1.3% and said it expected the country’s economy to grow by only 1% next year. Credit ratings agency Standard & Poor’s has already cut Russia’s rating to one notch above “junk” status. And last week Russia’s central bank raised its key interest rate from 7% to 7.5% in an effort to defend the value of the rouble, which has lost more than 8% against the dollar so far this year.
IMF-Logo1Mr Spilimbergo said the interest rate rise would reduce the rate of inflation, but that it would not be enough to prevent consumer prices rising more than 6% in 2014. Russia itself has expressed concerns about investors moving money out of the country amid tensions and sanctions over its intervention in Ukraine. Its central bank said $64bn had left the country in the first quarter of the year – more than the capital outflows registered for the whole of 2013. The investor flight has partly been prompted by US and EU sanctionstargeting a number of Russian companies and high-profile business figures, including those close to President Vladimir Putin. The Russian government has retaliated with a warning that the sanctions could be damaging for Western energy firms. US Treasury Secretary Jack Lew has said the sanctions have so far caused “a quite substantial deterioration in Russia’s already weak economy”.
#AceWorldNews says that Seven countries “Group of Eight” in a joint statement condemned Russia’s position on Ukraine and announced that it was suspending participation in the preparations for the summit in Sochi.
“We note that the actions of Russia in Ukraine contrary to the principles and values on which the function G7 and G8.
Therefore, we decided to stop at the time of participation in activities to prepare for the summit scheduled for June in Sochi, until situation does not allow the “eight” to conduct meaningful discussions, “- said in a statement released by the White House on Monday.
The statement was signed by the leaders of Canada, France, Germany, Italy, Japan, UK and USA, as well as the European Council and the European Commission.
Russia’s G8 partners also urged Moscow to solve the concerns of its security and human rights associated with what is happening in Ukraine, by direct negotiation in the presence of international observers or through the UN and the OSCE.
Authors of the statement stressed that Russia ready to help in these efforts.
In addition, the statement called on all parties to the conflict Ukrainian “behave very responsibly and with restraint and reduce tensions.”
It says ready to support Kiev in restoring unity, stability, political and economic well-being, as well as in the negotiations with the IMF.
On Sunday, U.S. Secretary of State John Kerry said that Russia and all risks losing in G8, if not change its position on the Crimea.
“Russia may lose summit” Group of Eight “in Sochi. If the situation does not change, it is possible that even this country is excluded from the G8”, – he said in an interview with U.S. television channel NBC .
Kerry promised that the Russian authorities could face “the freezing of assets of Russian entrepreneurs, leaving American business from the Russian market.”
He also warned of the possibility of a further fall in the ruble. ”
“We’ll have to pay a huge price.
This is not a position of strength. If Russia wants to be a country of G8, it should behave as such – said the Secretary of State. – G8 plus some other countries – all of them are fully prepared expose Russia insulation for this intrusion, “- said U.S. Secretary of State.
Moscow. March 3. INTERFAX.RU
#AceWorldNews says the International Monetary Fund (IMF) will send a fact-finding team to Ukraine over the next few days in response to the country’s request for financial support, the IMF’s Managing Director Christine Lagarde said Thursday.
“This will enable the IMF to make its usual technical, independent assessment of the economic situation in Ukraine and, at the same time, begin to discuss with the authorities the policy reforms that could form the basis of a fund-supported program,” she said in a statement.
#AceWorldNews says (Reuters) – A Taliban suicide bomber and gunmen attacked a restaurant popular with foreigners in the heart of the Afghan capital Kabul, killing 21 people including three United Nations staff and the IMF’s top representative in Afghanistan.
Gunmen burst into the Lebanese restaurant spraying diners with bullets after the bomber blew himself up near the entrance around 7.30 p.m. on Friday, just as people sat down to dinner.
Thirteen foreigners were among those killed, according to police, and details about the victims began to trickle through on Saturday.
The U.S. embassy said on Twitter at least two U.S. private citizens were killed. Britain and Canada confirmed they each lost two nationals. Denmark said one of its citizens also died.
The American University of Afghanistan said two of its U.S. employees died in the attack on La Taverna du Liban, a popular dining spot whose charismatic owner, Kamal Hamade, was also killed.