Burried under the rouble

The FT brings forward evidence of the financial cost Russia has paid for it's war with Georgia.

"The rouble has dropped by 4 per cent against its euro/dollar basket since before the Georgia conflict [7th August 2008]. More broadly, the conflict has ensured that, probably for years, investors will continue to demand a higher risk premium for Russia. It has thrown into doubt President Dmitry Medvedev’s liberal credentials and commitment to his investor-friendly reform agenda. That could lead to suboptimal growth, and delay or derail Russia’s sorely needed economic modernisation."

(Hat-tip to Charles Crawford A.K.A Blogoir)