Russian President Vladimir Putin is grappling with inflation that has seen the price of various food products increase rapidly, even by tens of percent in some instances. According to reports, butter theft has spiked sharply as more and more Russians are unable to afford basic goods.

Russia's key interest rate was raised to 21% in October, but that might not be an effective tool in fighting inflation, a top bank chief said.

Russia's sanctions-hit, militarized economy is expected to slow next year and banks' profits will fall, while the benchmark interest rate may climb to 23% by the end of this year, Andrei Kostin, CEO of Russia's second-largest lender,

The country has "failed" as an arms exporter, with a leading Putin ally warning the defence sector faces mass bankruptcies over high interest rates.