Russian banks exposed in Ukraine political crisis


  • World
  • Wednesday, 04 Dec 2013

VIENNA/MOSCOW (Reuters) - The political crisis in Ukraine, sparked by an East-West power struggle in which Moscow has gained the upper hand, is increasing the risk to the country's financial system and creating a particularly acute headache for Russian banks.

As crowds took to the streets to protest after President Viktor Yanukovich rejected a trade and cooperation deal with the European Union last week in favour of closer ties with Russia, its rattled central bank, low on reserves, appealed to people not to pull their deposits from the banks.

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