Downturn could boost Russia's communists

The global financial downturn could lead to an increase in social unrest in Russia and the re-emergence of the Communist party as a major force in Russian politics, forex traders may be interested to learn.

Speaking at his party's congress, communist leader Gennady Zyuganov said the tide of economic uncertainty, which has hit Russia particularly hard, would boost public discontent.

He commented: "The wind of history is blowing in our sails again ... At this time of crisis the world of imperialism is starting to die. We are standing on the threshold of political and social shifts."

Since May, the benchmark RTS stock exchange has dropped by around 70 per cent, while falling oil prices - which account for Russia's main export - have hit the rouble, reports Reuters.

At the start of trading today, the Russian stock market was down as a result of Opec's decision to defer a cut in oil output.