Vladimir Putin Faced with 'Full Blown Crisis' as Scandinavia and the US Move to Retaliate

Russia has been in hot water for its military actions but the country may have to look more into its economic state as a full brown crisis may be at bay. According to recent information, the Russian central bank attempted pushing the interest rates up to 17% in a bid to avoid collapse. However, this failed to curb the decline giving Vladimir Putin and his currency new all-time lows versus the dollar. Can Russia get back up?

Reading about Russia recently is not a hard find as the country's international relations and tensions have been greatly publicized. Whether this may have taken a toll on the country's economic situation or not, Putin's administration has now been warned of a crisis that may go full scale if not properly addressed. The country's central bank tried raising the interest rate up to 6.5 percentage points in a drastic move to avoid collapse. In the past six months, the rouble lost half of its value against the dollar. The bank wanted to return confidence on its currency but it may take more than just interest rates.

According to Business Insider, Russian policymakers now only have "bad" options. The central bank may continue pursuing defense of the rouble through foreign exchange reserves expenses. However, the country's cash pile has also been declining. If this cannot be mitigated then Russia may see a repeat of the 1998 financial crisis plunging into recession.

To make matters worse, Scandinavians have issued a warning against the country after one of its planes nearly hit a passenger aircraft. Despite claims of the Scandinavian Airlines that things were blown out of proportions, other officials called out Russia on it. According to Denmark's foreign minister Martin Lidegaard (via Financial Times) that the incident was completely unreasonable because it placed civilians lives at risk. He also encouraged concerned parties to reach an agreement limiting similar flights to avoid further accidents.

Former Latvian defense and foreign minister Artis Pabriks feared that if not addressed properly then another incident may not be too far ahead. Russia denied that it placed the jet at risk and maintained its jet was at a safe distance.