Putin set to address Russia amid economic crisis

The annual event, which lasted more than four hours last year, will be broadcast live on Russian television.

It is expected to be dominated by debate over the rouble, with Russia's national currency struggling to cope with falling oil prices and sanctions.

The Kremlin leader is also expected to take questions on Ukraine and on Russia's relations with the West.
Sanctions.

The BBC's Steven Rosenberg in Moscow says Russians will be paying close attention to what their president has to say about the economy.

Although the rouble strengthened on Thursday morning, it has taken a battering in recent days and Russia remains on the verge of recession, our correspondent adds.

The currency hit an all-time low on Tuesday, prompting Russia's central bank to reassure banks and financial companies that it would provide additional capital if necessary.

The rouble's collapse came after a drastic 6.5 percentage point rise in Russian interest rates to 17%.

Earlier this week, there were reports of Russians flocking to the shops to spend their cash before prices shoot back up. Many were said to be buying cars and home appliances.

Russia has been hit by Western sanctions, put in place after President Putin annexed Crimea from Ukraine in March.

US President Barack Obama is expected to sign legislation this week authorising new economic sanctions on Russia.

Later on Thursday, European leaders are also expected to approve further sanctions against Russia, with a ban on investment in Crimea and oil and gas exploration in the Black Sea likely targets.

Source: BBCNews

Photo sources: Kyivpost, Independent