‘Full-blown crisis’: Russia begins bailing banks out

‘Full-blown crisis’: Russia begins bailing banks out

[Ed. – Merry Christmas.  Emphasis added.]

Russia is facing a “full-blown economic crisis”, a former finance minister has warned, as the country is forced to take emergency financial measures. …

Alexei Kudrin, a former finance minister and once considered an ally of President Vladimir Putin, said: “Today I can say that we have entered or are currently entering a full-blown economic crisis. Next year we will feel it in full force.”

Analysts have warned that the Russian economy will not improve in the long-term unless either the oil price or relations over Ukraine improve. …

The comments came as the Russian economic crisis took a fresh turn, with the central bank stepping in to bail out a mid-sized lender.

The Central Bank of Russia (CBR) said that a plan to loan Trust bank an amount of up to 30bn roubles (£343m) had been approved, while analysts warned that Russia’s banking sector had become particularly vulnerable.

Trust bank has run a series of advertisements featuring actor Bruce Willis in Russia, along with the quote: “When I need money, I just take it”.

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