The Russian rouble has fallen to a new all-time low against the US dollar amid concerns about the effect of sanctions on the country’s economy.
The rouble fell about 1% to 38.72 per dollar, the weakest it has been since the currency was restructured in 1998.
Last week, the US and Europe introduced further sanctions against Russia for its actions in Ukraine.
Former finance minister Alexei Kudrin said on Tuesday sanctions would have a material impact on the Russian economy.
“The sanctions that have been imposed are going to have an effect for the next one or two years because they have limited opportunities for investment in this uncertain environment,” he said, according to Interfax news agency.
New sanctions imposed on Friday last week targeted Russia’s state finances, energy and arms sectors.
Russian state banks are now excluded from raising long-term capital in the European Union, export bans have been extended, while future EU-Russia arms deals are also banned.
The EU has also followed the US in targeting more individuals in President Putin’s inner circle, as well as some major companies.