In Russia, social crisis is waiting in the wings. The currency (RUB, ruble) is collapsing as oil prices plummet and Western sanctions linked to the Ukraine situation take effect. Since the start of the year the ruble has fallen by more than half against both the euro and the dollar; an unimaginable scenario “even in the worst nightmare” underlined the Russian Central bank Vice-President on Tuesday. consequently rising prices are expected to reach almost 10% in 2014 and 11.5% year on year for Q1 2015, according to the bank’s data. However companies are putting the brakes on wage rises.
Russian employees can expect tough times in 2015. Average prices for the basic foodstuff Sarasin flour have risen more than 65% in a year whilst pork and sugar prices have gone up by 25%, according to official data. Some shops are now displaying their prices in dollars. Rent has jumped 16%. Real wages started to drop in Q3 2014 marking on average a fall of 0.3%, according to the EHESE (French School for Advanced Studies in the Social Sciences). This is an unprecedented drop since the 2008-2009
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