April 10, 2018 / 4:06 PM / 11 days ago

Russian retailers warned of price increase after ruble tumbles

MOSCOW (Reuters) - European electronic and household goods manufacturers have warned Russian retailers of a possible 5 to 10 percent rise in prices after the ruble tumbled this week due to U.S. sanctions, retailers said on Tuesday.

FILE PHOTO: A customer holds 100-rouble banknotes while visiting a local grocery store in the village of Verkhnyaya Biryusa outside the Siberian city of Krasnoyarsk, Russia January 23, 2015. REUTERS/Ilya Naymushin/File Photo

Eldorado, which operates over 400 stores in Russia, said the hikes may mean it has to adjust its retail prices.

“Suppliers have already started warning of a possible 5-10 percent adjustment in prices,” a spokesperson for Eldorado told Reuters, adding that the warnings had primarily come from European manufacturers that do not produce goods in Russia.

    A spokesperson for M.Video (MVID.MM), which operates a network of 424 stores, also said that some of its suppliers had told them of plans to raise prices by between 5 and 10 percent.

    The ruble RUB= fell sharply on Monday as investors took fright after a new round of U.S. sanctions against Moscow, targeting officials and businessmen around Russian President Vladimir Putin.

    The ruble extended its losses on Tuesday, shedding over 3 percent of its value against the dollar, as investors continued a sell-off of assets fueled by fears that Washington could impose more sanctions and a realization that Russian credit and market risks had substantially increased.

    Reporting by Olga Sichkar; Editing by Adrian Croft

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