Feeling the strain

While Russia seemed relatively shielded from the impact of the financial crisis during the first half of the year, the turbulent events of September and October suggest that is no longer the case. Alastair Marsh reports


Panic seized the Russian financial sector in September and October, when the global financial crisis that has wreaked havoc in the US and Europe in the past year finally took hold in the emerging markets. As stock markets in all parts of the world reeled following the collapse of Lehman Brothers on September 15, Russian equity prices also plummeted, forcing the country's two main stock exchanges to suspend trading on an almost daily basis and the government to ban short selling.


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