Mr Stein says Russia is paying the price for its double exposure to the "most serious hazards of the modern world - energy and exports to continental Europe." The former, he says, is the result of Moscow's single-minded pursuit of energy control, regardless of the damage to Russia's business climate.
"The rouble has strengthened this year, partly on . . . optimism about emerging markets, partly due to - but also a cause of - Russian stock market gains and partly [on] high interest rates.
"Rates were cut to 12 per cent last week, [but] remain attractive - and should provide a barrier to the rouble collapse that the state of the economy seems to call for.
"If maintaining the value of the rouble remains the goal, it will be very difficult to ease monetary policy further. Better to act now to moderate a devaluation which represents the loss of income implied by the collapse of energy prices."
