Russia’s central bank more than doubled its key policy rate on Monday and introduced some capital controls as it scrambled to shield the economy from unprecedented Western sanctions that sent the rouble tumbling to record lows.

The main interest rate will rise to 20 per cent, its highest this century, from 9.5 per cent to counter the risks of the rouble’s rapid depreciation and higher inflation, which threaten Russians’ savings.

Earlier in the day, the rouble had crashed 30 per cent and was worth less than 1 cent against the dollar. It recovered some ground after the tough capital control measures announced by Moscow and is now lower by 18 per cent.

“External conditions for the Russian economy have drastically changed,” the central bank said, adding that the hike “will ensure a rise in deposit rates to levels needed to compensate for the increased depreciation and inflation risk”.

The monetary authority also ordered companies to sell 80 per cent of their foreign currency revenues, increased the range of securities that can be used as collateral to get loans and temporarily banned Russian brokers from selling securities held by foreigners. It did not specify which securities the ban applies to.

Swiss action

Switzerland will adopt all the sanctions that the European Union has imposed on Russia, the government said in a sharp deviation from the country’s traditional neutrality. “We are in an extraordinary situation where extraordinary measures could be decided,” president and foreign minister Ignazio Cassis said.

Only history would tell if such a move could happen again, he said.

Swiss neutrality remained intact but “of course we stand on the side of Western values”, he added. Switzerland has steered clear of imposing sanctions in a string of crises, including when Russia annexed Crimea in 2014.

The US on Monday imposed sanctions on Russia’s central bank and other sources of wealth, dealing a crushing blow to the country’s economy.

The measures, blocking Americans from engaging in any transactions involving Russia’s central bank, finance ministry or national wealth fund, are likely to push Russian inflation higher, cripple its purchasing power and drive down investments.