MH17: The Financial Fallout for Russia, E.U.

The downing of a Malaysian airliner over Ukraine Thursday is likely to ramp up hostilities between Russia and the West, ultimately leading to tougher economic sanctions for Moscow and increased fighting in eastern Ukraine. Russian President Vladimir Putin will come under intense domestic pressure to increase support for Ukrainian separatists in the wake of the tragedy, putting the Kremlin in a difficult position vis-à-vis the West. The situation could quickly spin out of control, leading to dire economic consequences for Russia as well as for the dozens of U.S. and European companies that do business there.