Russian banks saw their net profits fall by 25% in February, as the country's economic crisis gathers pace. Spiralling inflation and high interest rates have caused economic pain to both consumers and businesses across the country.

The Central Bank was forced to keep the key interest rate at 21% in March - the highest level in 20 years - as officials struggle to bring down inflation. In the build-up to the decision, Vladimir Putin had urged the Central Bank's governor, Elvira Nabiullina, not to “cryogenically freeze” the economy and to loosen its monetary policy.

However, his pleas fell on dead ears, and there now appears to be no respite in sight for beleaguered Russian firms.

Many with high exposure to bank loans are struggling to pay back their debt, and are fighting for their survival.

Retail and construction firms have been hit particularly hard by the tough economic conditions.

No sector of the Russian economy appears safe from the icy winds of the growing economic storm.

In the latest blow for the Kremlin, banks posted sharp declines in their net profits for February.

Profits fell from £2.6billion (286 billion rubles) in January to £1.9billion (214 billion rubles) in February, a drop of 25%. In annual terms, profits fell by 22.2%

Russian analysts claimed the reason for the drop was an increase in operating expenses for a number of items.

Home buyers are also facing eye-waveringly high mortgage rates, which are approaching 30%.

As of March 23, the average mortgage rate for new buildings is 27.92%, and for existing housing - 28.41%.

The implications of this were starkly spelt out by the senior director of bank ratings at Expert RA.

Ivan Ukleyin told the RBK publication: "Let's take a simple example with an average mortgage term of 25 years and a rate of 15% - in this case, the client, taking into account interest and insurance, will pay four times the cost of the apartment, but will receive only one apartment.

"At a rate of 20% for the same term, you will have to 'pay' for more than five apartments instead of one."