Russia MICEX Loses $58.4 Billion, More Than They Spent on Winter Olympics

Russia MICEX Loses $58.4 Billion, More Than They Spent on Winter Olympics

Global markets are falling fast in light of the crisis between Russia and Ukraine. Russia’s Micex index fell $58.4 billion on Monday. That is more than the $51 billion Russia spent on the 2014 Winter Olympics in Sochi.

“The threat of war, the central government in Kiev losing control over eastern regions, fear of imminent default — these are all unnerving messages for markets,” said IHS Global Insight’s Lilit Gevorgyan. “Many investors do not have much faith that the country is going to quickly turn around from the double political and economic crisis.”

The MICEX capitalization is now at 18.4 trillion rubles ($512.03 billion), which is 20.5 trillion less than Friday’s report.

The BBC reports the International Monetary Fund will be in Kyiv on Tuesday to discuss aid due to the dramatic market reactions to the crisis. They need to talk one-on-one with the new Ukraine government before they decide on an aid package for the country. An IMF assessment is needed in order for the European Union to provide money to Ukraine.

“There are some difficulties in that country to which we have to respond through emergency measures in the economic field,” said European Commission President Jose Barroso.

The West and G7 nations told Ukraine they were willing to help. After new Prime Minister Arseny Yatseniuk was elected, he spoke to parliament and the country about their lack of finances. He said deposed president Vikto Yanukovich withdrew $70 billion to offshore back accounts over three years and this money was given as loans to Ukraine. They have $12 billion in debt and $200 billion in gross national product.