Ruble Wilts as Kiev Burns With Sochi Overshadowed

For Russian President Vladimir Putin, the deadly clashes in neighboring Ukraine couldn’t have come at a worse time.

The violence that threatens to topple a government propped up by his financial aid is taking investors’ attention away from the Olympic games in Sochi that he sought to use as a showcase for how far Russia has come since its 1998 default. The ruble sank 1.3 percent in the week, the third-worst rout in emerging markets, while demand for local bonds dried up, pushing benchmark yields to a record high and prompting the government to cancel its third debt auction in four weeks.