Russia’s Looming Economic Collapse

Russia is heading into a deep recession with the depreciation of the Ruble, causing high inflation in the country. The country’s stock market closed on February 25th with no set date of when it will reopen. With the imposition of sanctions by the E.U., the U.S. and other countries, a potential default on external debts is expected as the reserves are temporarily frozen. Its impact will be felt in various industries with inflation expected to reach new highs and reduce purchasing power. Nearly 200 companies have paused or pulled out their operations from Russia and the Russian government is looking for a contingency plan to support the employment and social well-being of their citizens.