Russia's currency and stock market have suffered substantial losses since the outbreak of hostilities in Georgia three weeks ago. VOA Moscow correspondent Peter Fedynsky reports investors are nervous going into the weekend over the possibility that European heads of state may apply sanctions against Russia during a special summit on Monday to discuss the Georgian crisis. Russia's RTS Index of leading stocks fell more than six percent the day hostilities broke out in Georgia and reached their lowest point in nearly two years when President Dmitri Medvedev formally recognized the independence of Abkhazia and South Ossetia. Bloomberg News reports the Russian ruble is headed for its biggest monthly decline against the US dollar in more than nine years as investors reduce their Russian holdings. In addition, Russia's Central Bank says the country lost more than $16 billion in the week following the launch of military operations in Georgia on Aug. 8. Financial observers attribute the loss to nervous investors pulling capital from Russia. The RTS index reached its peak in April and has been ratcheting down since.
