Moscow facing lending crisis

Article reports that an exodus of foreign capital is forcing Russian banks to slash lending as the international reaction to the country’s military standoff with Georgia in August 2008 starts to affect the real economy.

The conflict with Georgia was the final straw in a summer punctuated by ill omens such as Vladimir Putin’s attack on Russian steelmaker Mechel that has reminded foreign investors of the political risks of investing in Russia.

ESO: Background information: Investors quit Russia after Georgia war http://www.europeansources.info/record/investors-quit-russia-after-georgia-war/

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