The crisis, which led to the virtual collapse of the banking system in August, has forced many firms to scale down operations built up during the explosive consumer boom of recent years, cut staff and generally tighten belts.

The rouble has lost some 60 per cent of its value since an effective devaluation on August 17, pushing up prices of imported goods. The banking system's payments problems have also disrupted trade.

The volume of goods imported into Russia in September fell 45.4 per cent from August's level as the crisis bit deeply, according to the state customs committee.

But foreign companies appear ready to ride out the storm.

"We are re-organising now to adapt to the new situation, but will maintain our operation here. In the long-term we expect the situation to improve," Alber Richard, Gillette'sGeneral Manager for Russia, told Reuters.

"Russia is one of the priority markets. We will continue to watch and manage the situation because we intend to be in business in Russia for the long term," said Andrei Bader, Procter & Gamble spokesman for Russia.

"We plan to overcome these complications, not doubting for a second our long-term prospects in this country," said Iwan Williams, Coca-Cola Co president for Russia.

Prime minister Yevgeny Primakov met foreign investors earlier this month to assure them that Russia's economy would remain open to them, but it is not clear what steps the government will take to improve the investment climate.

At a later meeting with US business representatives, the prime minister appeared comforted by their willingness to continue operations in Russia.

"Primakov welcomed the determination of the American businessmen to continue mutually advantageous trade and economic links with Russia," the government press service said.

The American Chamber of Commerce in Moscowsaid last month that about 50 major US companies had lost $500 million since the latest crisis started.

Scott Blacklin, head of the chamber, said the foreign business community was ready to work with Primakov's government but it needed signs that systemic problems were understood and being tackled.

Foreign companies have long complained about Russia's complex tax system, widespread corruption and the lack of key legislation to guarantee investments.

Blacklin said foreign businesses in the process of allocating resources for next year would probably scale back operations and cut new investment plans, though most were not yet ready to pull out.

Despite the latest lurch on the road to economic reform, some foreign companies remain decidedly bullish about a market of 150 million people needing quality goods and services. Some projects have been put on hold, but others are continuing.

Gillette's Richard said the company was about to finish building a new plant expected to cost $40 million, although salessuffered a 75-per cent drop in September.

Richard saw consumption shrinking by 50 per cent next year.

Coca-Cola was continuing regular supplies and marketing, Williams said. The company has invested $750 million in seven years of operating in Russia, building 12 bottling plants.

"Coca-Cola will invest in Russia for the next 100 years,"Williams added.

The Anglo-US drugs group SmithKline Beecham Plc also said it would maintain its billion-dollar operations despite losses suffered from Russia's recent crisis.

"Despite changes in the economic and financial situation, SmithKline Beecham will continue to work in the Russian market," Paul Carter, the company's general manager for the Commonwealth of Independent States, told Reuters.

The assortment of medicines, cosmetics and hygiene products in pharmacies has declined gradually because crisis-ridden banks are unable to provide guarantees to distributors supplying shops.

Gillette's Richard lamented the government's lack of a plan to tackle the financialcrisis. "When the government does not have a plan, how can a businessman like me have one."