EU firms feel impact of Russian crisis

Russia’s financial crisis is slowly yet surely spilling into Europe.

Falling oil prices have sparked a panic in Russia as the ruble slides, the economy slumps and banks scramble for cash. That’s prompting Russians to pull their money out of the country and foreign investors to reappraise plans for an economy that, according to the nation’s monetary authority, may contract 5% next year if oil prices stay around $60 a barrel.

“There are ripple effects,” said Eric Chaney, chief economist at AXA in Paris. “If there is a deep recession in Russia, it’s not good news for European banks, not good news for some luxury-goods makers who used to sell in Russia.”