Has Russia's Economy hit Rock Bottom...Yet?

Across the Russian economy, businesses have shelved investment plans, worried that the ruble might extend its decline if oil prices slide further and that geopolitical tensions could bring new economic headwinds.

The prospect of a prolonged slump is a challenge for the Kremlin, which has relied on rising living standards to boost popular support, as well as foreign investors, who have bet billions on Russia as a growth market.

For the moment, the Kremlin has been dialing back the tensions in Ukraine, which could lead to an easing of the sanctions imposed by the U.S. and Europe over the crisis there.

Russian officials say the economy has hit bottom; business executives are unpersuaded. Capital investment declined 6 percent in the first eight months of this year. Many companies have cash - corporate profits are up 38 percent this year, boosted mainly by the drop in the ruble - they just aren’t ready to spend it.

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