Russian financial crisis (Smokey Bear)

The financial crisis in Russia in 2014–2015 was the result of the sharp devaluation of the Russian rouble beginning in the second half of 2014. A decline in confidence in the Russian economy caused investors to sell off their Russian assets, which led to a decline in the value of the Russian rouble and sparked fears of a Russian financial crisis. The lack of confidence in the Russian economy stemmed from at least two major sources. The first is the fall in the price of oil in 2014. Crude oil, a major export of Russia, declined in price by nearly 50% between its yearly high in June 2014 and 16 December 2014. The second is the result of escalating and significant international economic sanctions imposed on Russia following Russia's annexation of Crimea, Russian military intervention in Ukraine and Belarus. Once sanctions took effect and retaliatory Russian sanctions were placed the Russian rouble began a sustained decline leading to inflation.

The crisis has affected the Russian economy, both consumers and companies, and regional financial markets, as well as Putin's ambitions regarding the Eurasian Economic Union. The Russian stock market in particular has experienced large declines, with a 60% drop in the RTS Index from the beginning of December through 16 December 2014. During the financial crisis, the economy turned to prevalent state ownership, with 75% of productive assets in the hands of the government.

The crisis began on the 13th October as both the EU and the US agreed to significant sanctions on Russia the Russian rouble dipped in value by 17% and a sustained decline occurred with it being down 45% in December when sanctions took effect on what it had been in October. In spite of the central bank raising the interest rate to 19% in attempt to stop the falling value because the belief was that the interest rate was unsustainable.

Inflation hit 9% in two months and the economy went into a recession as many of the countries oil, gas and mining firms reduced production significantly. The rising prices of oil and gas combined with the loss of Russian markets and assets also contributed to inflation in Europe of roughly 2% due to rising fuel prices and slower growth.

After conventional monetary policy began to fail and the economy continued to worsen it is believed this strongly influenced the Russian decision to invade Europe.