Despite positive reports that the worst of the recession was over, the Russian economy sank to news lows in April, contracting 10.5% compared to April 2008.

Earlier predictions that the country’s budget deficit would be 7.4% were also found to be over-optimistic with the deficit now thought to be 9%, according to official data.

Investors are no longer putting their money into Russian businesses and industrial output from the country has slowed right down due to the global recession and the  lack of domestic and global demand.

The figures have been backed by comments from Russia’s president, Dmitry Medvedev, who called for a period of public spending cuts, adding that he wanted a, “shift to a regime of tough economising of budget funds”.

Medvedev also criticised corrupt government officials for “suckling” away state funds into their own pockets.

The news has led to concerns that poverty may be spreading among the Russian people with churches reporting an increase in the number of people coming to claim free meals.