Putin scraps New Year holidays for ministers

Russia's president Vladimir Putin has scrapped New Year holidays for government ministers because of the unfolding economic crisis.

Russian private sector employees throughout the country are entitled to time off from January 1st to January 12th to celebrate the New Year – the main holiday in Russia – as well as Orthodox Christmas on January 7th.

Putin told a televised government session on Thursday that cabinet ministers should not take this time off.

“For the government, for your agencies, we cannot afford this long holiday, at least this year – you know what I mean,” he said.

The prime minister, Dmitry Medvedev, told cabinet ministers on Thursday he expected them to keep the situation in check even during the holiday lull "from the first days of the year".

Russia’s economy, battered by low oil prices and western sanctions, is set to enter recession next year for the first time in six years, while the rouble has fallen significantly.

The rouble staged a modest rally last week and was trading 2% higher at 52 roubles a dollar on Thursday, up from 80 roubles earlier this month.

The Russian central bank announced on Thursday that the country’s currency reserve had dropped below $400bn (£257bn) for the first time since August 2009, as the government has been selling the currency on the market to support the rouble.

Stabilising the rouble, one of the world’s worst-performing currencies this year, is a priority for the country’s monetary authorities. The central bank has raised its key interest rate to 17% and said it would offer dollar and euro loans to banks so they can help exporters that need foreign currencies to finance operations.

Many Russian companies have been locked out of western capital markets after the sanctions imposed on the country for its involvement in Ukraine.

Guardian