Cascade of bankruptcies to hit Russia

Increasing numbers of Russian individuals and entities may start going bankrupt as early as this month, businessman Dmitry Potapenko believes. In his view, massive bankruptcies will last until about next February, accompanied by hiking unemployment and inflation.

Credit: Depositphotos
Credit: Depositphotos

Russians will be unable to protect their savings as national currency may lose 15 to 18% of its value, Dmitry Potapenko says. Yet he advises against investing in real estate too, as buying Eurobonds and foreign currencies may be much more rewarding but in a longer run, beyond the six months horizon. Buying a new car is a bad idea as well, since its value immediately goes down by 15% upon purchase.

According to Potapenko, abrupt depreciation of the national currency is unlikely, but retail prices will keep growing. A dramatic currency depreciation may trigger panic among bank depositors who will withdraw their money from banks.

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