Russian economy hammered by massive money drain

While Russian President Vladimir Putin plots his next move into Ukraine, capital is fleeing Russia.

Russia's central bank this week confirmed that some $64 billion in assets held by Russians headed for the exits in the first three months of this year—roughly matching the total for all of 2013. The estimate of the capital exodus amounts to roughly 12 percent of Russia's gross domestic product. 

That hemorrhaging is expected to continue if the turmoil in the Ukraine continues. Officials at the World Bank have warned that Russia could watch another $150 billion in capital leave the country if the crisis deepens. Since 2008, nearly half a trillion dollars has fled the country.

As the money flowing out of Russia is surging, the upheaval in Ukraine has put a damper on investment coming into the country. The cash squeeze comes as Russia's economy is barely growing, inflation is rising fast and the central bank has been forced to raise interest rates to prop up a sagging ruble.

The U.S. and Western countries seeking to thwart Putin's Ukrainian ambitions have threatened economic sanctions if the Russian aggression continues. So far those have been limited to freezing the holdings of a handful of Putin's political allies.