Ukraine crisis hurting Russia's economy
Russia's credit rating is downgraded amid growing tension with the West. CNN's Jim Boulden reports.

The russian economy is already feeling the pinch from its tense standoff with Ukraine. The Russian Central Bank said Friday inflation this year will likely overshoot its five percent target, so it raised interest rates for the second time in two months. The rouble continues to lose value and investors are dumping Russian assets. It's becoming more expensive for Russia to borrow. The central bank said, quote, "Uncertainty about the international political situation" was hurting production and investment in Russia. A sentiment shared by some business leaders who feel Moscow failed to capitalized on the Winter Olympics.
Sochi was a very successful event, but all of that has unraveled, unraveled as a result of the Ukrainian crisis. And it is worrying, and development in the 24, 48 hours have made increasingly worried.
More sanctions to squeeze the Russian economy are imminent. The West has been ramping up economic pressure as president Obama explained on Friday.
What we've been trying to do is to continually raise the costs for Russia of their actions while still leaving the possibility of them moving in a different direction. And we've- we'll continue to keep some arrows in our quiver in the event that we see a further deterioration of the situation over the next several days or weeks.
Ratings agency S&P added to Russia's economic woes by downgrading the country's credit rating, saying more downgrade will likely come with more sanctions.

Recession could be on the cards.
That immediately create additional neverousness in the &* community, and there definitely is a risk for my country, for my economy.
And while the tension may be regional, economists worry the impact could be global especially if energy prices rise.
If both sides go forward with sanctions and counter-sanctions, what you'll get is a global recession. If you get a global recession, equity markets will sell off very violently, because we've come a long way. And energy prices will go up.
The big question: will the threat of all of this in any way affect president Putin's next moves?
Jim Boulden, CNN, London.