In October the Russian central bank intervened heavily to prevent an immediate ruble collapse. But it needed to husband its reserves, and in November it exited the market. Starting at 33 to the dollar before the Ukraine crisis began, by December 1, 2014, the ruble had fallen to 49 against the dollar. This was terrifying for Russian corporate borrowers, who owed $35 billion in debt repayments by the end of the year. There was a scramble for survival. Rosneft, which had $10 billion to pay, was in the market hoovering up euros and dollars.67 The strain on weaker Russian businesses was unbearable.
...more
