Russia Mortgage Crisis: Economic impact of sanctions against Russia over Ukraine

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12.02.2016
ua_today
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UT's Viewpoint is joined by Andriy Buzarov, political analyst and foreign relations expert, to discuss Russia's mortgage crisis.

"If you want to understand the current situation in Russia, it concerns not only the mortgage system or loan system, or foreign investment in Russia. The most important thing, this is the direct result of economic sanctions against this country. The Russian economy was very closely connected with the European market - with the Turkish market, for example. Turkey was Russia's fifth biggest trade partner, after China, Germany, Italy and the Netherlands.

The (Russian) bank system, and all these obligations concerning mortgages are connected with a US dollar, not with the Russian national currency (rouble). Because of the dollar devaluation they have problems with fulfilling contract obligations."

The bank system in Russia did not and will not give any solution to the problem".

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