Rouble Price of Goods Rise
in Russia as Sales Fall
Companies are raising prices seeking to offset
the drop in the value of the sales they make in roubles. While no companies are
showing signs of pulling out of Russia, Apple on Dec. 16 halted online sales
there - just three weeks after boosting the price of an iPhone 6 by about 25 percent to 39,990 roubles. The value of that iPhone sale
when converted into dollars already has plummeted to about $585 from $847.
The same has happened to other companies trying to keep pace.
On Dec. 3, McDonald’s Corp. raised the price of a Big Mac by 2.2 percent to about 94 roubles - only to see the value of that
sale plunge to about $1.35 from $1.77 in the intervening days. Since
mid-November, Renault and partner Nissan Motor Co. have lifted prices by 8 percent on cars made by their AvtoVAZ
(AVAZ) operation in Russia.