Ruble crisis: Russia’s forex reserves fall to lowest level since 2009 – TIME ONLINE

Ruble crisis: Russia's forex reserves fall to lowest level since 2009 – TIME ONLINE

The crisis in Moscow continues to smolder: The foreign reserves fall, Putin sweeps his ministers on vacation. The finance minister sees the ruble decline yet stopped.

25th December 2014 18:34 clock

Russian President Vladimir Putin (left) and Prime Minister Dmitry Medvedev in Moscow | © Alexei Nikolsky / Ria Novosti / AP / dpa

The Russian government continues to fight the crisis. For the first time since 2009 slid the huge reserves of the country under the brand of 400 billion dollars. The value of the reserves lie now at $ 398.9 billion, said the Central Bank of Russia. In the days between 13 and 19 December alone, they fell accordingly by 15.7 billion dollars.

Russia’s reserves generated in good years, when the oil price was even higher. Now the government has to use the foreign exchange reserves in order to halt the decline of the domestic currency, the ruble and forestall turmoil in the financial markets.

The Russian Finance Minister Anton Selujanow said the decline of the Russian currency was stopped. “We see a trend of ruble strengthening,” he said. In fact, the rate of the ruble has recovered from a historic low in the previous week.

However, more and more public and large private companies, fearing defaults requests for guarantees, loans and other aid. Among them were recently about the oil company Rosneft, VTB Bank and Transaero. The government provided assistance from the national prosperity funds in view, the current four trillion rubles (about 63 billion euros) is filled. The money comes from the foreign exchange reserves are shrinking rapidly now.

Russia is going through a crisis because of Western sanctions on Ukraine-conflict, and faced a sharp drop in oil prices. The Russian budget depends about half of revenues from energy exports. The economy and the livelihood of many businesses depend on commodity sales from.

Putin sweeps ministers New Year holidays

Russian President Vladimir Putin said, was the crisis due not only to external factors on its own economic problems. The position offers the opportunity for a “spiritual renewal”. In a televised cabinet meeting, the President praised the recent moves by the government to fight the crisis.

At the same time, Putin stressed the ministers of the New Year holiday. They could not afford to take a vacation, he told them. He expected the Cabinet members to keep the situation under control. Between 1 and 12 January almost all Russian workers have free -. In the period also saw the Orthodox Christmas on January 7

penalty as BDI President not to blame for Russia- Crisis

Meanwhile, defense industry President Ulrich Grillo the disputed Western sanctions. The heavy economic and monetary crisis go back especially on errors of Moscow in the past. “The main cause of the current crisis in Russia are not the sanctions, but the obsession with oil and raw materials. The country has failed for decades to establish its economy larger,” Grillo said.

“I’m still behind this course. Long-term legal security in Europe is more important than short-term business success,” said Grillo, who speaks as head of the BDI industry association for more than 100,000 companies with over eight million employees. Other top executives and SPD leader Sigmar Gabriel had recently warned not to tighten sanctions on.

He said he hoped that the situation in Russia-Ukraine conflict jeopardizes not Grillo said further. “It must be possible to find a diplomatic solution to the solution of the Ukraine crisis.” For some German companies the decline in exports to Russia were already threatening. But overall economic games for the Germany at a ratio of exports to Russia by three percent a secondary role.