Devaluation of the rouble and weak consumption has taken its toll on the Russian economy and, as a result, has created major problems for leather exporters based in Xinji, China. Russia and some other countries in eastern Europe, account for approximately 80% of Xinji’s leather exports.

Since June 2008, the rouble’s value has fallen by more than 30% against the dollar and consumption has also fallen dramatically as the credit crisis takes its toll. Leather and fur apparel are the third largest consumer goods segment in Russia, which is also said to be the largest leather apparel consumer in the world.

It is hoped that business will improve once the rouble stabilises and consumer demand begins to rise again.

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