Tourism, luxury goods companies hard hit by Russia's recession

Paris

RUSSIA'S lurch into recession has hit many tourism and luxury goods companies hard, forcing them to cut prices - and in turn costs - in an attempt to limit the damage.

And there are few signs things will get better soon, with a fragile ceasefire in eastern Ukraine doing little to ease international tensions over Moscow's support for pro-Russian separatists in the region.

The rouble lost almost half of its value against the US dollar last year after oil prices crashed and the West imposed sanctions on Moscow. That has crushed Russians' spending power, forcing them to cut back and put pricey holiday plans on hold.

Spending on international travel by Russians fell by 6 per cent in 2014, according to the UN World Tourism O…