Friday, November 7, 2008

Russia is sinking China is buying

Russian markets are paying a big price for Moscow's "reckless" decision to invade Georgia, which spurred capital to flee Russia and weakened its currency, a senior At least in part because of the Georgia crisis, Russian financial markets have lost nearly a third of their value, with losses in market capitalization of hundreds of billions of dollars.The Russian rouble has depreciated nearly 10 percent since Russia crushed an attempt last month by its pro-Western neighbor Georgia to retake the separatist region of South Ossetia. Capital is fleeing Russia, with billions leaving. Opportunity costs for Russia are huge with its plans to diversify the economy and rebuild infrastructure at risk. Just watch the Chinese pounce on the oil interests of the region

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