European and U.S. leaders have threatened sanctions against Russia, creating risks that economic growth will stall, demand for the country’s assets will dry up and a selloff in the currency will deepen. “There is a risk of international backlash against Russia at a time when the economy faces an increasing need for foreign capital inflows… This uncertainty risks a further escalation in domestic capital outflow.”

Around the world, stock markets are tumbling with Europe down around 2% – almost its largest drop in 7 months; and Japan down 600 from Friday’s highs.