Russian President Vladimir Putin announced on Friday he was cutting his salary by 10 per cent as well as the earnings of several top government officials, as the country's economy reels from the collapse of the ruble.
A relentless slide in oil prices -- Brent Crude has almost halved in price since June -- while a blessing to most rich world consumers, is becoming a curse for countries reliant on resource exports.
Earlier this week, Russia made its last-ditch effort to save its economy and its currency from collapsing. The country's central bank hiked the interest rates from 10.5 percent to 17 percent, the biggest hike since Russia's ruble crisis in 1998, to prevent the ruble from crashing in value for the sixth time this year even though the currency has hit its record low, sparking worries of an economic and political instability
The ruble has lost more than half its value, the economy is in crisis and his aggression in Ukraine has turned the country into an international pariah.
Russia's ruble strengthened sharply on Wednesday after dramatic falls on the previous two days as the government pressured exporters not to hoard foreign-currency earnings
The rate setting committee of the US Federal Reserve is expected to release a dovish statement today after its two-day meeting ends. <br />
The ruble plunged more than 11 percent against the dollar on Tuesday in its steepest intraday fall since the Russian financial crisis in 1998 as confidence in the central bank evaporated after an ineffectual rate hike.
Amid such an economic environment globally, it is difficult to imagine how risk assets such as stocks can thrive.
The EU and the United States have imposed several rounds of sanctions on Russia over its role in Ukraine, sending the ruble plunging and inflation soaring.