Russia’s recent economic turbulence, weakened ruble and high inflation could be coming to an end, according to the chief financial officer of the country’s leading telecoms business.
Alexey Kornya, chief financial officer of Russian telecoms giant MTS, told CNBC Monday that “in terms of inflation and ruble devaluation, the worst has already passed,” he said.
Russia’s economy was hit by a 50 percent-plus decline in oil prices since June 2014 and sanctions imposed by global powers for its annexation of Crimean and role in the pro-Russian uprising in Ukraine.
The combination of both saw capital outflows from Russia increase and the ruble weaken greatly against the dollar, spurring on a rise in consumer prices.
However, analysts are starting to see life coming back to the beleaguered economy and the recession bottoming out. Inflation remains high, however, at 15.8 percent in August and the ruble remains weak against the dollar, trading at 65.6 to the greenback Monday.
Kornya from MTS, which is the leading telecommunications group in Russia and former Soviet countries, told CNBC Monday that his company was not too dependent on the currency fluctuations his country had seen over the last year as over 90 percent of its business was domestic.