Currency converter
^
News Feed
News Search Topics
ОК
Use filter
You can filter your feed,
by choosing only interesting
sections.
Loading

Impact of sanctions on Russian economy no weaker than of oil, ruble slump — ex-minister

December 22, 2014, 13:05 UTC+3 MOSCOW
Russia's former finance minister said Russia is entering a full-blown economic crisis, with the country’s GDP likely to fall by 2-4% and the inflation to hit 12-15%
1 pages in this article
Street near the Moscow International Business Centre

Street near the Moscow International Business Centre

© EPA/MAXIM SHIPENKOV

MOSCOW, December 22. /TASS/. The negative impact of sanctions on the Russian economy is no weaker than that of the oil price slump and of the weakening of the ruble, Russia’s former finance minister, Alexey Kudrin, told a news conference in Moscow.

Kudrin, who leads the Civic Initiatives Committee, argues that the sanctions have greatly harmed the investment conditions on the domestic market as the share of foreign borrowings is rather high.

“We are on a trend towards worsening investment conditions,” Kudrin believes.

He said Russia is entering a full-blown economic crisis, with the country’s GDP likely to fall by 2-4% in 2015.

According to the ex-minister, if oil prices stay at about $80 per barrel in 2015, Russia’s economy will shrink by 2%. If oil prices fall to $60 per barrel, Russia’s economy will contract by 4%, Kudrin said.

According to him, Russia’s imports may plunge by 40% next year amid the ruble’s slump and the inflation may hit 12-15%.

The ex-minister also said Russia’s investment-grade sovereign rating may be downgraded amid negative economic developments in the country.

“Russia’s rating will be downgraded next year and will fall to a junk grade,” he said.

The ex-finance minister said he expects a series of defaults in Russia next year.

Infographics Oil prices over 30 years Oil prices over 30 years
Year-average inflation-adjusted oil price. Infographics by TASS

Show more
In other media
Реклама
Реклама