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Russian economy hit by Ukraine turmoil
http://hosted.ap.org/dynamic/stories/E/EU_RUSSIA_ECONOMY?SITE=VANOV&SECTION=BUSINESS&TEMPLATE=DEFAULTRussian economy hit by Ukraine turmoil
By LAURA MILLS
Associated Press
Apr 16, 9:16 AM EDT
MOSCOW (AP) -- Russia's economy slowed sharply in the first three months of the year as uncertainty over the crisis in Ukraine spooked investors into pulling money out of the country, a government minister said Wednesday.
In the first official estimate of the Ukrainian turmoil's impact on growth, Economy Minister Alexei Ulyukayev said the economy expanded just 0.8 percent in the first quarter - far short of the earlier prediction of 2.5 percent.
"The acute international situation of the past two months" and "serious capital flight" were to blame, he told parliament.
Russian markets have been rattled by tensions between Moscow and neighboring Ukraine, where Russia annexed the Black Sea region of Crimea last month. The main stock index tanked 10 percent in March, wiping out billions in market capitalization. In the first three months of 2014, the ruble lost 9 percent against the dollar, making imports more expensive, while spooked investors pulled about $70 billion out of the country - more than in all of 2013.
