Russia announced new measures to stave off a liquidity crisis on Monday as Vladimir Putin, the Russian prime minister, said a state-controlled bank would extend $50bn (€34.7bn, £27.7bn) in loans to help the country’s debt-laden companies and banks pay off foreign loans.

But Russia’s main bourses sank sharply with the dollar-denominated RTS closing down 7.5 per cent, and the rouble-denominated Micex falling 5.5 per cent, as a crisis of confidence continued to depress the money markets and second and third-tier companies were starved of cash.