Beware the Russian bear

The Russian financial markets have not had a good third quarter. A 38% decline in the domestic equity market since early August, allied with a blowout in Russian corporate debt and credit default swap spreads saw a massive withdrawal of money by foreign investors in August and September. The country's foreign reserve figures for August show a $16 billion decline in reserves for the first half of the month. This was followed by a $5 billion decline in the early September figure.

The current

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