Apple halts Russian sales citing 8216 volatile 8217 rouble

The falling price of the Russian rouble is continuing to cause problems across the country as Apple announces a suspension of sales in the country.

Apple confirmed that it would be stopping online sales of iPhones, iPads and other products in Russia as the rouble has become too volatile to set prices. It is the latest blow to the nation's economy as the value of its currency continues to plummet, set against falling oil prices and the potential for further Western sanctions to come.

Russia's central bank announced on Tuesday (December 16th) that it would be increasing interest rates from 10.5 per cent to 17 per cent to help combat the falling value of the rouble. This has done little to reverse the fortune of the currency which has dropped by over 20 per cent in the past week.

On Wednesday (December 17th), the value of the rouble hit an all-time low with one dollar being able to buy as many as 79 roubles (£0.73). This increased slightly in early morning trading reaching 71 roubles for one dollar. However, the downturn in fortunes in Russia has prompted concern among some of the biggest companies in the world.

Apple has closed its Russian website, the second time it has done so in the past two months, citing that constantly changing the value of the rouble has meant it has not been able to set competitive prices. Visitors to the tech giant's website were met with the message of "we'll be back" in several languages.

The company said in a statement: "Due to extreme fluctuations in the value of the rouble, our online store in Russia is currently unavailable while we review pricing."

Russia has also been hit hard by falling oil prices which have dropped despite a meeting of the Organization of the Petroleum Exporting Countries (Opec) deciding to keep out at its current level.

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.