Western sanctions for the war in Ukraine and the recent collapse in oil prices could cause the recession of the Russian economy in 2015. This is what we read in a statement from the Ministry of the Economy of Moscow in which it is estimated a 0,8% drop in Russian GDP for the next year. The data provided today by Russia clashes with previous estimates which saw a growth of 1,2% for 2015. 2014, however, should end on a positive note with GDP increasing by 0,5%. A contraction in Russia's GDP would be the first since 2009 for the country's economy.
“I think the Russian economy is vulnerable to three types of crises – explained the Deputy Minister of Economy Alexei Vedev – structural, economic and geopolitical”. From Russia it is expected that the sanctions will last until 2016 while previously the aim was to ease them over the next year. On the crude front, the ministry lowered estimates of the average price of a barrel in 2015 to $80 from the previous $100.
