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Russian Economy Slumps as Ruble Tumbles

The year is not ending on a good note for Russia President Vladimir Putin, at least where it concerns the economy.
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/ Source: CNBC.com

The year is not ending on a good note for Russia President Vladimir Putin, at least where it concerns the economy. The Russian ruble tumbled to a one-week low on Monday, building on 2014's record decline, after new figures showed the country's economy shrunk in November for the first time in over five years.

The U.S dollar rose as high as 57.5090 against the ruble on Monday, after the Russian economy ministry said that the country's gross domestic product (GDP) fell by 0.5 percent last month. This was the first drop since September 2009, according to Reuters, and comes after the Russian government forecast that GDP could decline by as much as 4 percent next year.

The renewed ruble turmoil came after a few days of stabilization that saw Moscow attempt to reassure markets the worst was over. Finance Minister Anton Siluanov said that liquidity fears had receded and the currency had found its equilibrium, the U.K.'s Financial Times newspaper reported on Christmas Day. The ruble has declined around 70 percent since the start of the year, taking a hit on the military incursions in Ukraine and the subsequent imposition of international economic sanctions on Russia.

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Ruble's wild ride

Dec. 17, 201401:38

-- Matt Clinch, CNBC