(MENAFN- AFP) The Russian ruble fell to a record low against the euro and a five-year low against the dollar on Wednesday amid fears of a Ukrainian default as the hryvnia collapsed. The euro surged to 49.46 rubles at around 0940 GMT,breaking the record set last week of 49.35 rubles. The dollar rose to 36.0015 rubles, its highest rate since March 2009. It was already approaching its 2009 record of 36.72 rubles. The ruble has lost more than eight percent against the euro since the start of the year, as investors are reluctant to put money into emerging economies and Russia's economic activity has slowed. Analysts at VTB Capital said that "tensions over Ukraine once again started weighing on the ruble."Standard & Poor's ratings agency last week lowered Ukraine's rating to CCC from CCC+, indicating that the country is close to default, while Russian banks are greatly exposed to the crisis-hit ex-Soviet country.- 'The coffers are empty' -Ukraine's new authorities have warned that the country is in dire need of international financial help following the sudden ousting of president Viktor Yanukovych last week.Ukraine's new interim leader Oleksandr Turchynov said this week that "the coffers are empty."Russian Deputy Finance Minister Sergei Storchak had said on Tuesday that Russia had "no legal obligations" to pay out the full $15 billion (10.9-billion-euro) loan secured last year by Yanukovych.Russia disbursed the first tranche of $3 billion but the fate of the rest of the loan is uncertain amid an icy start to relations between Moscow and the pro-Europe new Ukrainian authorities.The hryvnia tumbled around 5 percent on Wednesday afternoon against the dollar, which climbed above the symbolic level of 10 hryvnias. The hryvnia has lost around 18 percent of its value since the start of the year.Ukraine's new authorities have asked the West to provide $35 billion to shore up its economy."Ukraine probably needs a financing package of $20-25 billion to cover it for the next year," macro-economic research firm Capital Economics said in a briefing note.Fitch ratings agency warned on Tuesday that Russian state-owned banks are holding the bulk of Russian banks' total exposure to Ukraine, estimated at $28 billion.But economist Chris Weafer at Macro Advisory said Wednesday that the ruble fall was "actually not justified based on Russia's fiscal and monetary strength," blaming it on fears over Ukraine."It is a case of avoiding any asset which may be at risk from the continuing crisis in Ukraine and the ruble is perceived to be in that category for now," Weafer said.Economist Liza Ermolenko at Capital Economics said the Ukraine events were just one factor behind the ruble's fall among others including a current account surplus that has fallen sharply."The direct economic impact from the crisis in Ukraine on Russia's economy will probably be relatively limited, so this is unlikely to be the sole reason for the ruble's weakness," said Ermolenko.Growth of the Russian economy slowed down sharply to 1.3 percent in 2013 from 3.4 percent in 2012 and 4.3 percent in 2011. Figures published this year show this slowdown growing more marked.
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