The country's Finance Minister Anton Siluanov added to the gloom on Wednesday, stating that Russia's revenues would fall by 3 trillion rubles ($45.6 billion) next year, if the oil price averages $50 a barrel, Reuters reported.
Currently, global oil prices are below that level, hovering around $45 a barrel on the back of a lack of demand and glut in supply, hitting major oil exporters like Russia hard.
Adding fuel to the fire, Siluanov said that low oil prices – which are down more than 60 percent since June 2014 -- have created a $180 billion shortfall in revenues to date, and that sanctions placed on Russia, as a result of its incursions into Ukraine, have created a shortfall of $60 billion.
As such, Siluanov said he would propose a 10 percent budget cut in 2015, bar defense spending. In addition, Siluanov said that Russia was ready to uncork its reserve fund – a rainy day fund – in an effort to boost liquidity, Reuters reported.
Even if the government appears to be changing its stance on how to tackle the economic crisis, Russia is in a "very difficult situation", according to Andrew Sheets, chief cross-asset strategist at Morgan Stanley.
"The challenge with foreign exchange reserves is always that they're encouraging until you start to use them, and then the market starts to worry that you're burning through them," Sheets told CNBC Europe's "Squawk Box" on Wednesday.
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He added that, instead, markets were likely to focus on the fall in oil prices, which has continued into 2015.
"That is presenting a very fundamental issue even if other measures are taken," he said. "As long as oil is falling, the market will view Russia as being fundamentally challenged."