Russian Economy Takes Hard Hit

Two months when Russia invaded Georgia, it was thought that Russia was making its way back into world power. However, the country has recently hit a downward spiral due to the global economic crisis. The war with Georgia, instead of helping Russia, has played a role in the demise of the economy. Also, the drop in gas prices has affected the countries economy because they are the number two exporter of crude oil in the world. Also, since May the Russian stock has fell 61%. 

This has caused investors to pull their money out of Russia. It is estimated that 74 billion dollars has been pulled out of Russian since August."Over the past five months, Russia's 25 richest people have lost more than $230 billion US, according to an analysis by Bloomberg," stated Nicholas Van Praet of the Canwest news. 

Russian is trying to come up with strategies to bring back their investors and help raise the economy. They will not suffer bankruptcy because they have 188 billion dollars budget surplus and has the world's third largest gold reserve. However, the confidence of Russia along with its economy had to plummet. It went from believing it was back on its feet and ready to rise above everyone, and now the country has taken a huge step back. Also, Russia will not be able to look to the US for support because both presidential candidates feel that Russia is "evil."