NEW YORK (TheStreet) -- Shares of Russian telecommunications company VimpelCom (VIP) fell 5.66% to $4.17 in afternoon trading Wednesday amid continued economic distress in Russia tied to the ruble's significant decline.
The Russian government's statistics ministry, Rosstat, said Wednesday that inflation in the country will reach 11.4% for 2014, according to initial estimates, thanks to the currency's drop. This is up from 6.5% in 2013 and would mark the highest inflation figure since Russia's financial crisis in 2008.
The ministry added consumer prices climbed 2.6% in December, the month in which the ruble had some of its sharpest declines.
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Rosstat also said food prices rose 15.4%, non-food products 8.1%, and service charges 10.5%.
Rosstat plans to release the final inflation data on January 12.
Russia's economy shrank in November for the first time in five years, and the nation will likely enter a recession in the first quarter of 2015.
Separately, TheStreet Ratings team rates VIMPELCOM LTD as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate VIMPELCOM LTD (VIP) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."