Airport Attack: Security Crackdown Ahead

The deadly bomb attack at Moscow's Domodedovo airport on January 24 is likely to result in a hefty domestic crackdown, with Russian Prime Minister Vladimir Putin keen to protect his record of improving security ahead of parliamentary and presidential elections. On the social side, we caution that things could get ugly, with tensions between Russian nationalist groups and immigrants from the North Caucasus (where the suicide bomber is thought to have come from) already high. The market reaction will be much more muted, with similar incidents in recent years having failed to significantly concern investors in Russia.

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