WASHINGTON — The Russian government, fresh off starting a crisis by occupying the Crimean peninsula, admitted that its economy is struggling.
Reuters reported that the Russian economy saw a loss of billions of dollars in corporate and state money as unmarked Russian troops occupied the Ukrainian autonomous region of Crimea.
It was the first time that the Russian government admitted the economic impact of the military action. The U.S. and the European Union have imposed sanctions to protest the aggressive action in Ukraine and some suggest this has affected the Russian economy. Although the sanctions may not directly have led to the recent struggles, the uncertainty and tension surrounding the Crimean peninsula probably took its toll on the Russian economy.
Russia’s Deputy Economic Minister Sergei Belyakov said, “The economic situation shows clear signs of a crisis.” This has some analysts worried that the Russian economy will go into a recession because of the military action in the Crimean peninsula.