Russia’s entry into a recession, with negative GDP of -2.2% for the first quarter of 2015, as compared to the first quarter of 2014. Further, the combined effect of the sanctions and the rapid decline in oil prices in Q$2014 has caused significant downward pressure on the value of the ruble and flight of capital out of Russia. At the same time, the sanctions on access to financing have forced Russia to use part of its foreign exchange reserves to prop up the economy. These events forced the Central Bank of Russia to stop supporting the value of the ruble and increase interest rates.