Russian Ruble Hits 70 to the Euro as Slump Worsens

The value of Russia's beleaguered ruble fell Thursday to more than 70 to the euro for the first time since March, deepening its recent meltdown. 

The ruble also tumbled against the dollar to 64.42, its weakest since the end of February, as the currency continued to drop after a period of relative stability. 

Russia's economy has slumped into recession on the back of lower oil prices and Western sanctions over the Ukraine crisis.

The ruble lost around half of its value in 2014 but recovered slightly as energy prices stabilised this year, allowing officials to claim the worst of the crisis had passed.  

But the recent decline, resulting from a renewed fall in oil prices that has seen the ruble lose some 20 percent of its value since mid-May, has highlighted how volatile the situation remains. 

The weakening ruble prodded the country's central bank to reduce interest rates last week by the smallest amount this year as it juggles attempts to resuscitate the economy against rising inflation fears.

Authorities now predict that Russia's economy will shrink by some 2.8 percent this year, while the IMF says that prolonged Western sanctions could lead to the country losing nine percent of GDP in the medium term. 

The new fall in the ruble came as officials on Thursday began a controversial campaign to destroy Western produce smuggled into Russia in breach of a year-old embargo imposed in retaliation for Western sanctions.

The move has sparked an outcry in the country, with politicians and average Russians calling for the food to be given to the soaring number of people living beneath the poverty line.