It has been a nightmare year for Russian financial assets. It started with the incursion in Ukraine and continues with the collapse in energy prices.
The Russian benchmark Micex index is up 5.2% but the ruble is down 64% against the US dollar. And it’s in absolute freefall with USD/RUB hitting a record 54.11 from 45.00 eight days ago.
This is the kind of chart that breaks a country.
USDRUB goes parabolic
On the upside for Putin, Russia did gain 27,000 km2 of territory in Crimea and its 2.4 million inhabitants.
Surely at some point there will be an amazing opportunity to buy Russia but right now it’s collapsing.