The rouble-traded MICEX index was down 0.7 percent to 1,468.01 at 0700 GMT, while the dollar-based RTS was off 1.0 percent to 1,492.53.

Shares of Russia's third-largest crude producer TNK-BP were up 1.8 percent after its board of directors said on Friday it would discuss a possible dividend payout in the coming weeks.

"High beta" shares, which tend to outperform a rising market or underperform a falling one, led the retreat on Monday, with Russian steel and coal miner Mechel and hydroelectric power producer RusHydro down 1.6 percent.

The key support level for MICEX stands at 1,465 points, Alor analyst Natalia Lesina wrote in a note.

Russian stock indexes followed a sell-off in Asian markets , with investors concerned that China's slowdown could worsen, while the World Bank has cut its growth forecasts for the East Asia and Pacific region.

The World Bank report on Russia's economy is due later on Monday.

Local market players were also waiting for international reaction to the Eurogroup meeting in Luxembourg to give a clearer vision on the euro zone debt crisis.  "Whether Spain seeks a bailout remains one of the key questions on the agenda, as European finance ministers meet in Luxembourg today to discuss Spain," analysts at Urlasib bank wrote in a note.

Trading activity is expected to be lower on Monday, due to a public holiday in the United States, with overnight rouble exchange operations shut down.

By 0700 GMT, the rouble had eased 0.6 percent to 31.06 against the dollar, taking its cues from the retreat in the global oil price - the main source of budget revenue for Russia.

The rouble also gave up 0.2 percent to 40.34 against the euro and shed 0.4 percent against the euro-dollar currency basket.

Oil, Russia's chief export, fell 0.8 percent with Brent futures trading slightly above $111 per barrel.

"Columbus Day holiday in US may lead to a lower activity on Russia's forex market but will not result in a lower volatility," said Igor Akinshin, a trader at Alfa-bank.