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Rouble Tumbles To Record Dollar and Euro Lows

By Dr. Mike Campbell
Dr. Mike Campbell is a British scientist and freelance writer. Mike got his doctorate in Ghent, Belgium and has worked in Belgium, France, Monaco and Austria since leaving the UK. As a writer, he specialises in business, science, medicine and environmental subjects.

Recent political turmoil in the Ukraine which has seen massed demonstrations in the streets and up to 80 protestors shot dead by sniper fire, presumably on officially sanctioned orders have had repercussions in Russia, reports suggest that hundreds have been wounded. The crisis has culminated, for now at least, with the removal from power of President Viktor Yanukovych following the popular uprising and a decision by the Ukrainian parliament to install an interim president. Mr Yanukovych has taken shelter in Russian and accused his rivals of conducting a coup.

Russia has close ties to the autonomous republic of Crimea where the majority of the population are ethnic Russians, using Russian as their native tongue. The Crimea is home to major Russian military basis harking back to the days of the former Soviet Union: it is regarded as strategically vital to Russia. A potential military conflict is threatening, but both sides seem to be attempting to avoid further confrontation.

The protestors reacted angrily to President Yanukovch’s decision to turn his back on closer links to the EU in favour of a stronger Ukrainian-Russian axis. The Russian’s have been quick to dispatch troops to Crimea to protect ethnic Russians from what has been styled neo-fascist elements – the presence of Russian forces is, officially, to protect the human rights of ethnic Russians.

The response of the West has been to urge calm and deplore Russian actions and to suggest that any Russian adventure in Ukraine would trigger an economic response – rather than a military one. The crisis has already driven the Rouble to record lows against the Euro (Russia does 41% of its trade with the EU) and the Dollar, it stood at 36.5 Roubles to the Dollar and 50.3 Roubles against the Euro. Markets reacted badly to the crisis, but have regained some early losses.

Dr. Mike Campbell
About Dr. Mike Campbell
Dr. Mike Campbell is a British scientist and freelance writer. Mike got his doctorate in Ghent, Belgium and has worked in Belgium, France, Monaco and Austria since leaving the UK. As a writer, he specialises in business, science, medicine and environmental subjects.
 

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