(MENAFN- AFP) Russia's first attempt to borrow on financial markets since November flopped on Wednesday as Moscow only raised a fifth of the amount it was seeking.
The finance ministry, which had offered up to five billion rubles (66 million euros, $76 million) in bonds on the domestic market, in the end raised only 1.1 billion rubles.
It also had to accept paying 15.27 percent interest on the bonds it was able to place, according to a statement.
The plunge in the value of the ruble at the end of last year pushed Russia to halt raising funds on debt markets.
Russia's economy is set for a sharp contraction of three percent this year according to the IMF, as plunging oil prices hit its biggest export and budget earner.
Sanctions imposed on Russia by the West, which accuse Moscow of meddling in the conflict in eastern Ukraine, have also crimped growth.
The Russian government unveiled Wednesday a $21 billion anti-crisis plan to kick-start the stalled economy, with much of the money to come from funds put away when oil prices were high.
The 2015 budget foresees Russia still selling bonds at home and raising $7 billion on international debt markets, but analysts are sceptical this is now realistic.
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