The Russian ruble is reaching record lows in the last trading session of the year, battered by declining oil prices.

The ruble dropped 1.3 percent in early morning trading on Wednesday to 73.2 rubles, its lowest level in a year. The national currency lost 40 percent of its value last year and is now 20 percent down compared to a year ago.

The Russian economy has been suffering from the effects of Western economic sanctions and oil prices, the backbone of the country's economy, which are currently hovering around 11-year lows.

The Russian economic development minister on Tuesday said the government is not so much concerned about the drop in the value of the ruble but rather its high volatility, making budget planning difficult.