A few days ago I’ve run into a hostel offering beds of the sort like on the picture above for mere 600 roubles/night (just under $10). What’s more, it is at Starovagankovsky pereulok, literally across the road from the main entrance to the Kremlin. Their second location is in Old Arbat, which is pretty good too. I am hereby sharing this info with budget travel enthusiasts. The hostel site is only in Russian but the staff speak English, and most clients seems to be travellers from distant lands. A few more hostels of the same class noticed in the area but I’ve had no occasion to inspect them in person. All-in-all I’d say Moscow, as well as the rest of the country, is at the cheapest to travel to it’s been in the last 10-15 years.
Right on the New Arbat street. Beds in a 16-bed room are said to be 500 roubles/night. Noticed in the news, no direct reports, but at $17/night in the center of Moscow you can’t go wrong. Bear Hotel website >>