Red-Green coalition in Iceland

It looks as though Iceland's troubles may be about to take a turn for the worse: in the aftermath of the resignation of the country's prime minister and government yesterday, a minority Red-Green coalition is in the process of being formed, and is likely to govern after the elections scheduled for May. The FT has some comment here.

Investors flee Russia

The Guardian notes that Russia's

victory has been undermined by an alarming flight of capital. Analysts estimate that, since the war began on August 8, $19bn (£10.7bn) has been withdrawn from the country.

The Kremlin is also facing other economic problems. They include a rapid drop in the oil price, which has fallen almost 30% from peaks close to $150 a barrel, and a 9.7% increase in inflation since the start of the year.

Analysts believe the war could become a catalyst for a more profound slowdown following at least seven years of unprecedented economic growth.