President Vladimir Putin said on Thursday, Dec 18, Russia's economy will rebound after the ruble's collapse against the dollar but warned that it could take two years for the country to emerge from crisis.

Russia's economy is heading into recession in what one minister called a "perfect storm" of low oil prices, Western sanctions in the Ukraine crisis and global economic problems. The rouble is down 46 percent against the dollar this year.

"If the situation develops unfavorably, we will have to amend our plans. Beyond doubt, we will have to cut some (spending). But a positive turn and emergence from the current situation are unavoidable," Putin said.

"The growth of the global economy will continue and our economy will rebound from the current situation."

He said Russia must diversify its economy to reduce dependence on oil, its major export and a key source of state income and a recovery could start at some point next year.

The rouble was more than 2 percent weaker on the day, despite central bank action to prop up the currency and around 45 percent down against the dollar this year.