Russia – economy/Dagestan

The Russian central bank on Tuesday raised the country’s key interest rate by 3.5 percentage points, raising the interest rate from 8.5 to 12 percent. The rise in interest rates was decided at an extraordinary meeting held after the Russian rouble fell to its lowest level against the dollar in 16 months on Monday. Monday was the first time since March 23, 2022, that a dollar cost over 100 roubles. The war in Ukraine is a major contributory factor to the strained Russian economy. Russia’s high military spending, coupled with Western sanctions, has contributed to putting the country’s currency under pressure.
     The Central Bank called an emergency meeting when the rouble on Monday fell to a value of 102 roubles to a dollar. “Inflationary pressures are increasing. The decision is aimed at mitigating risks to price stability, the central bank said in a statement after the rate hike. It warns that there is a risk of missing inflation targets for 2024 if prices continue to rise as before. Inflation has remained at stubbornly high levels, although the Bank has tightened its monetary policy. Consumer prices in July were 4.3 percent higher than a year ago. There is concern in Russia that the fall of the rouble and inflation could affect the standard of living of ordinary Russian citizens. /ritzau/Reuters/

A fire at a tank station in Dagestan was started by an explosion at a vehicle garage. Photo: Russian Emergencies Ministry/Reuters/
At least 35 people have died in a fire at a petrol station in the Republic of Dagestan in southern Russia. Among those killed are three children. Russian ministries said in a statement, according Izvestia. In addition, 80 people have been injured. Among them, more than ten are seriously injured. The fire broke out in the city of Makhachkala, the capital of the autonomous Republic of Dagestan. Dagestan is located on the Caspian Sea and borders Azerbaijan and Georgia, as well as the Russian republics of Chechnya and Kalmykiya. Izvestia said a witness saw the fire start among cars in a parking lot, after which the fire spread to the gas station. The fire triggered an explosion, the witness said on the messaging service Telegram. The Investigation Committee of the Russian Federation for Dagestan has stated that the explosion took place at an auto repair shop. The committee has launched a criminal investigation into the matter, Izvestia says. /ritzau/