We have all seen the major crumbling of the already fragile UK / Russia relationship, with tit for tat diplomatic expulsions carried out over the last couple of weeks.  While the main issues revolve around accusations that Russian spies have been operating in the UK, the situation may well go a lot deeper for UK business and future co-operation between the two countries.

The UK business sector is very heavily represented in Russia, with oil giants such as BP and Shell holding major asserts in the country.  Prior to the fall out with the UK government there had been signs of a potential return to old governing styles, with some hand picked assets returned to state control - including an area of the country which involved a BP joint venture.

There have also been a number of laws voted through of late, which limit the control and profits which foreign investors can make in the country.  Initially the Russia government had suggested joint ventures and a more softly softly approach, although this changed when resistance was met.  We have also seen the flexing of the Russian muscles with the closure of one of the main gas lines to Europe - although this was later re-opened.

There is speculation that the authorities are just showing the West how much power the country has, and the fact they are not afraid to show it.  We have seen some gas price rises due to this issue, as nobody is quite sure if it will occur again, and how much control the Russian authorities really have.