Central Asia Faces Financial Chaos As Russia’s Economy Collapses

Russia’s invasion of Ukraine and the Western sanctions in response have left former Soviet states in Central Asia facing economic chaos. Since Vladimir Putin launched his war on February 24, the ruble has collapsed by 50 percent with no bottom in sight. Russia has enacted currency controls reminiscent of the early 1990s and telegraphed plans to default on foreign debtholders. The uncertainty is gripping Central Asia, where Russia is a top trading partner and the source of critical remittances. Local currencies rise and fall with the ruble.…