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Russian Economic Development Ministry may raise 2014 GDP forecast after China deal

MOSCOW, June 19. /ITAR-TASS/. Russia’s Economic Development Ministry may raise the gross domestic product (GDP) forecast for 2014 in September after Gazprom signed a gas supply deal with China, Minister Alexei Ulyukayev said Thursday.

“We have an official forecast of 0.5% for this year, and we will most probably revise it, and raise it in September,” he said. “This will be possible thanks largely to the Gazprom’s deal, to the gas supplies,” Ulyukayev said.

Gazprom earlier signed a $400 billion 30-year contract to supply 38 billion cubic meters of gas per year to China.

Low investment activity is the main reason that the country’s economy grows slowly, Ulyukayev said.

The net capital outflow from Russian funds stood at $80 billion in January-May, and in April-May, the outflow was $15 billion. According to the ministry’s forecasts, funds will see a small inflow in June but, overall in 2014, there will be about $90 billion net outflow, Ulyukayev said.

Ulyukayev said that Brussels and Washington are unlikely to toughen their sanctions against Russia over the Ukrainian crisis.

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Alexey Ulyukayev

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