The thing that makes matters even worse for the financial state of Russia is that President Obama is getting ready to sign more sanctions into place. Congress took a vote on the new sanctions this past Saturday and unanimously approved the Ukraine Freedom Support Act. These sanctions will target companies that transfer or sell military equipment to the rebels in Ukraine.
Although President Obama has not yet signed it, Russia is already bristling against it. The goal, of course, is to allow Russia to make changes in its current actions against Ukraine.
Secretary of State John Kerry reminded Russia that all the sanctions against Russia, including those imposed by the US and Europe, could be lifted immediately if President Putin makes the right choices and removes his troops and weapons from Ukraine. Kerry also reminded the Russian people that the sanctions are not aimed at hurting them.
Russia attempted to stop the collapse of the ruble by raising their interest rates - but it did not have the desired effect. It is still collapsing.
In the past few days in Ukraine, things have been a little calmer than usual. They have not yet stopped, though, which is why the new sanctions are about to be initiated.
A strong negative response from Russia is expected. Because Russia is not apt to be happy with the promise of new sanctions, it has promised to retaliate. The US is watching for the possibility of missiles and troops being used in whatever "response" they might have next.
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Source: http://news.yahoo.com/video/russian-economy-quot-brink-crisis-172030472.html
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Graphics: Mine
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Keywords: Russian economy, collapsing, Russia, new sanctions, Congress, Obama, Kerry, Ukraine