Baku. 19 January. REPORT.AZ/ Russia’s rouble crisis is posing a major threat to countries along its southern fringe, whose economies rely heavily on billions of dollars shipped home every year by their own citizens working within Russia. Report informs, this was stated in the article of The Guardian.
Due to the economic difficulties, many migrants from the former Soviet republics are thinking about leaving Russia, the article says.
According to data projections by the Guardian, based on World Bank figures, nine countries that rely heavily on cash sent home from Russia for their economic buoyancy could collectively lose more than $10bn (£6.6bn) in 2015 because of the weak Russian currency..
The economies of the region are strongly tied together and fall of the Russian currency affects the currency of its neighbors. The sharp decline in the rouble has forced currency devaluations in Turkmenistan this month, and speculation that Kazakhstan’s tenge may need a further devaluationagainst the dollar after a 19% move last February.
According to the World Bank, 21% of Armenia’s economy, 12% of Georgia’s, 31.5% of Kyrgyzstan’s, 25% of Moldova’s, 42% of Tajikistan’s, 5.5% of Ukraine’s, 4.5% of Lithuania’s, 2.5% of Azerbaijan’s and 12% of Uzbekistan’s, rely on remittances.
The Guardian also notes that a great part of transfers to these countries are money from Russia.