How Currency Woes Undermine Georgia, Moldova

Governments across the former Soviet Union have felt the impact of currency devaluations, but currency depreciations and related economic problems in Georgia and Moldova are exposing their governments to major political pitfalls this year, including even potential government collapse. Both countries have been pursuing greater integration with the West but are still heavily linked to Russia, making them susceptible to Russia's economic downturn. Economic difficulties will undermine both countries' efforts to achieve greater political and economic integration with the European Union and will be a boon to Russia's strategy of slowing the West's push into the former Soviet periphery.