Consumer shopping frenzy in Russia as falling rouble prompts stockpiling and bank run fears

Russian consumers have flocked to stores, frantically buying a range of big-ticket items as they looked to pre-empt price rises following the staggering fall in the value of the rouble over recent days.

As the government looked at ways of easing the selling pressure on the rouble, which has slid 15% in just two days and raised fears of a bank run, many Russians were buying cars and home appliances — in some cases in record numbers — before prices for these imported goods shoot higher.

Swedish furniture giant Ikea has already put consumers on notice that its prices will rise today, which resulted in weekend-like crowds on a Wednesday afternoon.

Shops selling a broad range of items are reporting record sales while some have had to suspend operations, unsure how far down the rouble will go. Apple has halted all online sales in Russia.

Alyona Korsuntseva, a woman in her 30s, says the current jitters surrounding the Russian economy reminded her of the 1998 Russian crisis when the rouble tumbled following the government’s default on sovereign bonds.

“What’s pressuring us is the fact that many people rushed to withdraw money from bank cards, accounts,” she says.

The rouble has suffered catastrophic losses this week as traders fretted over the impact of low oil prices on the Russian economy, as well as the impact of Western sanctions imposed over Russia’s involvement in Ukraine’s crisis.

It even lost ground on Tuesday after the surprise move by Russia’s Central Bank to raise its benchmark interest rate to 17% from 10.5%.