Russia Working on Grexit Scenario

The current euro zone crisis may look like a game of “Crazy Ivan,”* but the Russians are already considering the consequences of a Greek departure.

Elvira Nabiullina, governor of the Central Bank of Russia (CBR), has told CNBC that it is analysing the threat: “We do consider this scenario as one of possible risks, which would increase turbulence in the financial markets in the European market, bearing in mind the fact the European Union is one of our major trading partners, and we are definitely worried by it.”

The Russian economy is struggling for growth and this week just posted a 5.5 percent fall in industrial output in May. On top of sanctions and weaker oil prices, more aggressive demands for debt forgiveness in the southern European countries could have further negative consequences for Russia, says Governor Nabiullina.

“There is a possibility of this kind of sentiment becoming stronger, which could reduce the rate of the development of the recovery of the European economy, and bring down the demand for our products,” she told CNBC.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza