RUSSIA - Fresh produce suppliers in Russia are feeling the pressure as the ruble hits record lows.

Reuters reports that since this week, the ruble has fallen almost 20 percent against the dollar and grocery prices are continuing to hike in response to the economic crisis. The lowest oil prices in five years and Western sanctions imposed over Russia’s involvement in Ukraine have crippled the value of the ruble.

Speaking to the Associated Press, Vladimir Yevteev, a grower who supplies cabbage, potatoes, and carrots to supermarkets all over Russia, says he may be facing bankruptcy next year.

“It’ll be serious,” he said. “A serious season.”

Yevteev said that he’s struggling to buy supplies and equipment, and on top of that, a drought has left his warehouse “virtually empty,” according to the Associated Press.

Earlier this week, the Russian central bank raised the interest rates to a steep 17%. Though Russia still has reserves of around $416 billion, analysts say the currency is in dangerous territory, according to Reuters.

“The central bank will have a very hard time stabilizing the ruble so long as the sharp sell-off in oil prices continues,” said Vladimir Miklashevsky, an economist at Danske Bank.

During a three hour news conference on Thursday, President Vladimir Putin was confident that the economy would rebound, blaming the crisis on external factors such as accusing the West of building a “virtual” Berlin Wall to contain Russia.

“Didn’t they tell us after the collapse of the Berlin Wall that NATO would not expand eastwards?” he said. “But it happened immediately. Two waves of expansion. Is that not a wall? It’s a virtual wall.”

Putin was hopeful the recovery would take at least two years, but he noted that it greatly depends on how long the West plans to maintain sanctions on Russia.  

As long as Putin’s plan to put Russia back on track is still in question, the industry will have to wait and see the overall impact the plunging ruble will have on fresh produce.

Stay tuned to AndNowUKnow as we continue to track the Russia’s economic crisis.