Putin may have to step back in Ukraine to stem crisis

WASHINGTON (MarketWatch) — Vladimir Putin has little choice but to withdraw from eastern Ukraine in order to stem the financial crisis that is spinning out of control in his country.

Western sanctions, the drop in oil prices, and crony capitalism in Russia have combined to create a “perfect storm” in Russian financial markets.

Dramatic efforts by the Russian central bank to stop the falling ruble have so far failed. It has revived memories of the 1998 financial crisis.

“What can Putin do? He can’t reform [the economy.] He’s stuck. The only thing he can do is to stop the financial sanctions by withdrawing from eastern Ukraine,” said Anders Aslund, a senior fellow at the Peterson Institute.

Read on here:  MarketWatch.com