China’s Geely Automobile Holdings saw its Hong Kong listed shares drop by over 20% this week after it told regulators that net earnings for the year are expected to decline by 50% due to the economic crisis in Russia.

The company said the sharp devaluation of the ruble, which is down more than 50% against the US dollar year to date, has caused an unrealised foreign exchange loss and sharply lower sales volumes in Russia.

Geely’s overall sales fell by 26% in the first 11 months of 2014, due mainly to a 49% drop in exports. Domestic sales were weaker in the first half of the year but have been recovering since August.

Sales in Russia are estimated to have fallen to 16,100 units year to date. The company has begun hiking retail prices in this market in response to the weak currency. It also said it will accelerate localisation of production in Russia and in other major overseas markets to reduce foreign exchange risks. 

Other carmakers, including GM, Audi and Jaguar-Land Rover, suspended sales in Russia altogether this week due to the volatility of the ruble exchange rate.