Russia made the unexpected move to raise interest rates to 7.5%, as fears grow over the fallout from the Ukraine crisis.
Russia's central bank upped rates by 50 basis points as tensions escalate between the West and Russia over the Ukraine. It is understood that the move is motivated by growing concerns over the financial and economic fallout from the crisis.
The rate rise came in the wake of Standard & Poor’s decision to cut Russia’s credit rating to BBB-.
On Thursday US secretary of state John Kerry accused Moscow of using 'gross intimidation' to subvert the democratic process in Ukraine with the threat of additional sanctions.
On the same day Russia ordered large-scale military exercises on the Ukranian border as Kiev sought to get rid of armed pro-Russian separatists occupying buildings and checkpoints across the east of the country.