The Kremlin is warning that Western sanctions and falling oil prices may lead the country into recession in 2015. Earlier this year, the Russian economic development ministry had been predicting 1.2-percent growth but is saying the economy may contract by 0.8 percent in 2015, the BBC reports. The rouble, meanwhile, has lost 40 percent of its value this year, and the Russian finance ministry is considering spending more than 500bn roubles to support economic growth. Oil prices have also fallen by a reported 40 percent since the summer due to oversupply caused by an increase in US shale oil production.
“The real damage from the collapsing rouble and oil price is to investment and growth,” Chris Weafer, a senior partner at Macro-Advisory in Moscow was quoted as signing by the BBC. “Russia is a non-investible country for all but the bravest of hedge fund investors right now, and will remain in this category until both the rouble and oil stabilise at minimum.”
