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Sunday, January 18, 2015

Russia’s rouble crisis poses threat to nine countries relying on remittances

Russia’s rouble crisis is posing a major threat to countries along its southern fringe, whose economies rely heavily on billions of dollars shipped home every year by their own citizens working within Russia.

The 50% drop in the rouble has not only decimated the value of remittances sent home by workers from the Caucasus and central Asia, but is discouraging migrants from staying in Russia to earn a salary for themselves and their families.

According to the World Bank,21% of Armenia’s economy, 12% of Georgia’s, 31.5% of Kyrgyzstan’s, 25% of Moldova’s, 42% of Tajikistan’s, 5.5% of Ukraine’s, 4.5% of Lithuania’s, 2.5% of Azerbaijan’s and 12% of Uzbekistan’s, rely on remittances.

About 40% of remittances to Armenia, Georgia, Moldova and Ukraine are from Russia

Migrant Remittance Inflows From Russia As a % Share of GDP,2013




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