Russia bails out another bank as economic problems pile up

[superbeets]

The Russian government has spent almost £430 million bailing out state-owned lender Gazprombank, as it attempts to stave off the collapse of its banking sector.
It said the move would enable the stricken giant 'to strengthen its capital structure and provides for sufficient scope to expand its operations'.
It comes days after a £1.1 billion injection into state-owned VTB, Russia's second-largest bank. VTB expects to receive another £1.6 billion in the first three months of this year and Gazprombank has asked for another £330 million.

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Big problems: Russian President Vladimir Putin faces big economic problems as we head into 2015

 

[superbeets]

Moscow has escalated its support for state companies which have been hit by the slump in the oil price, sanctions from the West and the 40 per cent collapse in the rouble.
The currency crashed 20 per cent on December 18, triggering fears of a run on the banks and there was further evidence of its problems yesterday as Russia revealed annual inflation hit 11.4 per cent in 2014, the highest level since the financial crisis of 2008.
Inflation rose 2.6 per cent in December and the economy shrank in November for the first time in five years. Russia is expected to enter recession in the first quarter of 2015.

 

[superbeets]

Officials predict the economy will shrink by 4 per cent next year if oil trades at $60 a barrel.
David Buik from broker Panmure Gordon, said: 'President (Vladimir) Putin has got a real problem. Russia is not only facing a serious recession but also the fact its banks are heavily exposed to the exploration, oil and energy industries.'

 

[superbeets]

• Prostitutes in the Arctic city of Murmansk said they were hiking prices by 40% and would forthwith peg them to the dollar.

 

[superbeets]

• An oyster bar in one Moscow park is now called the No Oyster Bar because it can’t get its seafood due to Russia’s retaliatory food imports ban; it now makes half the money it once did, selling pizza and burgers.

 

[superbeets]

• Many Russians are rethinking New Year breaks abroad because they can’t affords to buy enough dollars or euros.

 

[Ricboff]

• An oyster bar in one Moscow park is now called the No Oyster Bar because it can’t get its seafood due to Russia’s retaliatory food imports ban; it now makes half the money it once did, selling pizza and burgers.

LOL

what are you saying beets? that Putin's counter agricultural import sanctions has had little desired affect? That it has affected his OWN people adversely?

how could that be? maybe the math? USA + EU GDP is approx 17 times greater than Russia's....was that it?