TODAY: First banking bailout of crisis; Kudrin criticises government response, says Russia plunging further into crisis; U.S. blocks Rosneft expansion attempts; Navalny’s defenders plan new rally. 

The Central Bank has intervened to bail out Moscow’s Trust Bank which is on the verge of insolvency, issuing a loan of $500 million at the current exchange rate.  Former Finance Minister Alexei Kudrin has castigated the government for its slow response and failure to announce a concrete strategy to deal with what he says will transform into a ‘fully-fledged economic crisis‘, in which Russia’s sovereign debt rating will likely be classified as junk.  According to the median of a Bloomberg estimate by 20 economists, the risk of the country falling into recession in the next 12 months has risen to 93% from 75% a month ago.  In an attempt to reduce pressure on the banking system the Central Bank has temporarily suspended accounting rules.  The authorities have announced a tax on grain exports to protect domestic stocks.  Good news is that China is likely to continue to buy vast quantities of Russian oil.