Rebels in Ukraine's Donetsk plan referendum on joining Russia

Looks like te sanctions against Russia are actually helping it rebuild its manufacturing base. Rather than importing loads of European food and Asian industrial goods, the Russians are now forced to make things for themselves again - something western nations should take note of here to give our kids their pride back in their state and have real jobs again, not burger flippers. Added to which the forced depreciation in the value of the Ruble means Russia is actually the cheapest place to make cars in Europe, cheaper even than China Sanctions may actually have the adverse effect of turning Russia from a state over reliant on energy and defence exports to a real manufactruring nation once again that can compete with the rest of the world. Something that USA and Europe can only dream of.....................



"Most economists agree the saving grace was the same factor that triggered the trouble in the first place: the rouble.

The currency has been depreciating since the middle of 2013, and lost almost half of its value against the dollar following a sharp drop in December.

While this has made imports more expensive, it has also breathed new life into parts of Russia’s languishing industrial sector.

Costs in local currency have fallen, and therefore consumers and companies are in some cases more inclined to buy Russian-made goods rather than imported ones — a process known as import substitution.

“I see a renaissance of Russian industry, a renaissance we’ve been waiting for for a long time,” says Georges Barbey, general-director of the Russian arm of Lanxess, the German chemicals group.

“Prior to the devaluation our customers had difficulties with cash flow. Chinese, Turkish and South Korean competitors had become life-threatening to them. But the devaluation was their rescue. Since then we’ve seen how they’ve recovered financially and are now running at full capacity.” FT.Com