Meanwhile, tensions with Washington are on the rise, too: the United States canceled a civilian nuclear cooperation deal, reports Nancy Marshall Genzer for Marketplace. The deal would have allowed Russia to import spent nuclear fuel from reactors supplied by the United States. Russia could have made billions storing or even reprocessing the fuel.
Russia’s recent clash with Georgia has come at a pivotal time. A six-year commodity boom has occurred, pumping life into the economy, created billionaires and international expansion would be the next step after loosening ties to Russia. There is great concern over Market Vectors Russia Index (RSX) and whether it can sustain through these times.
RSX is down 33.2% year-to-date.