RUSSIA: Vladimir Putin Vows To Repair Ruble, Blames Crash On The West

Via Reuters:

President Vladimir Putin assured Russians on Thursday that the economy would rebound after the ruble's dramatic slide this year but offered no remedy for a deepening financial crisis. In an assured performance at a three-hour news conference, Putin blamed the economic problems on external factors and said the crisis over Ukraine was caused by the West, which he accused of building a "virtual" Berlin Wall to contain Russia. Putin even cracked jokes at times, despite pressure to fix an economy that is heading into recession and caught by what his economy minister called a "perfect storm" of low oil prices, Western sanctions over Ukraine and global economic problems. The ruble has fallen about 45 percent against the dollar this year, and suffered particularly steep falls on Monday and Tuesday, but Putin said its eventual rise was unavoidable and avoided using the word "crisis".

The retail fallout has been immediate.

Russian consumers flocked to the stores Wednesday, frantically buying a range of big-ticket items to preempt the price rises kicked off by the staggering fall in the value of the ruble in recent days. As the Russian authorities announced a series of measures to ease the pressure on the ruble, which slid 15 percent in the previous two days and raised fears of a bank run, many Russians were buying cars and home appliances — in some cases in record numbers — before prices for these imported goods shoot higher. The Swedish furniture giant IKEA already warned Russian consumers that its prices will rise Thursday, which resulted in weekend-like crowds at a Moscow store on a Wednesday afternoon.

General Motors, Audi, Land Rover, and Apple have temporarily suspended sales inside Russia.