25 Mar 2014
Russia effectively out of G8 - Danske Bank
Lars Christensen, Chief Analyst at Danske Bank comments that yesterday Russia was effectively kicked out of the G8 when the rest of the group – the G7 – issued a strongly worded statement denouncing Russia’s annexation of Crimea.
Key Quotes
“The G7 said it would suspend participation in the planned G8 meeting in Sochi in Russia and demanded that Russia take action to deescalate geopolitical tensions. The G7 countries also strongly hinted that Ukraine should receive financial assistance. Finally the G7 said that the group’s energy ministers would discuss ways to improve the ‘collective energy security’.
“On Monday Russian Deputy Economy Minister Klepach said that net capital outflows out of Russia might have been as large as USD70bn in the first quarter of the year and also that real GDP had basically come to a complete standstill.”
“We overall share these views and think there is a very large risk that Russia will enter recession in the coming quarters.”
Key Quotes
“The G7 said it would suspend participation in the planned G8 meeting in Sochi in Russia and demanded that Russia take action to deescalate geopolitical tensions. The G7 countries also strongly hinted that Ukraine should receive financial assistance. Finally the G7 said that the group’s energy ministers would discuss ways to improve the ‘collective energy security’.
“On Monday Russian Deputy Economy Minister Klepach said that net capital outflows out of Russia might have been as large as USD70bn in the first quarter of the year and also that real GDP had basically come to a complete standstill.”
“We overall share these views and think there is a very large risk that Russia will enter recession in the coming quarters.”