A tense week of negotiations between Russia, the US and NATO have ended with what now seems to be a more serious ratcheting up of tensions over Ukraine. It seems like that Russia’s recent belligerent tone may be an increasing sign of things to come, which is met by a rising threat of Western sanctions, weighing on Russian and Ukrainian financial markets. Meanwhile, Turkey's net FX reserves plunged to just $7.8bn last week, providing an even more pitiful backstop in the event that banks and corporates struggle to roll over their large external debts.
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