Russia calls for calm as budget cuts loom

Russian government officials have appealed for calm after predicting budget cuts and a further surge in inflation as the country faces its worst economic downturn in 15 years.

With the currency and economy wilting under the twin blows of Western sanctions and a fall in the price of oil exports, finance minister Anton Siluanov proposed slashing 10% from most areas of the state budget.

That is a significant turnaround for the government of president Vladimir Putin, who only weeks ago told the nation in a televised address that state spending would not be cut.