The ruble often mirrors movements in oil prices because the Russian economy is extremely dependent on energy.

The dollar-denominated RTS share index was down 3.8 percent to 635 points, while the rouble-based MICEX was 2.2 percent lower at 1,609 points.

In a country where many consumer goods are imported, the ruble's drop will also push up inflation, testing the so-far robust public support for President Vladimir Putin in a year when Russian Federation holds a parliamentary election.

All Russian ministries are expected to present their proposed cuts by the end of the month with a view to cutting 500 billion rubles ($6.3 billion) in government expenses, Finance Minister Anton Siluanov said.

The Central Bank set the official exchange rate at over 85 rubles to the euro on Monday.

Many analysts said a move over 80.1 roubles per dollar, a record low touched in December 2014, seemed inevitable.

For Russia's budget to balance in 2016 with current spending plans it would require a dollar to be worth 210 rubles, according to a report by Bank of America Merrill Lynch cited by Russian news website RBC on Wednesday.

The ruble had come close to 80 on Monday but recovered ground Tuesday after Chinese growth data met expectations.

The Russian Central Bank came in for criticism from Sergei Glazyev, an economist and aide to Putin.

The low oil price has also put pressure on other post-Soviet economies, particularly oil producers.

Shares in Sberbank, the country's largest bank and a bellwether for the economy, were down 4.2 percent.

The ruble has lost more than half of its value against the dollar over the last two years, during which time Russia's economy has been buffeted by oil price falls and global sanctions over the conflict in Ukraine.