"Next year's inflation [rate] will be between 12 and 15 percent, or could even be lower," Kudrin said during a press conference.
According to Kudrin's predictions, in 2015 Russia's GDP will drop by 2 percent if oil prices hover at $80 per barrel, or by 4 percent should they remain at $60 per barrel. He said that the economic downturn would continue in 2016.
Amid Western economic sanctions against Moscow introduced over its alleged involvement in the Ukrainian crisis and further affected by the ruble devaluation, the Russian Economic Development Ministry has changed its inflation forecast for 2014 from the initial level of 4.5-5.5 percent to more than 9 percent.
Earlier in December, head of the Russian Central Bank Elvira Nabiullina said she expected the 2014 inflation rate to reach 10 percent and stay at that level in the first quarter of 2015.
The European Commission’s forecast, published on November 4, suggested that it may take until 2016 for the inflation in Russia to fall to 6 percent.
Oil Prices, Western Sanctions Have Equal Effect on Russian Economy: Kudrin
"Sanctions are influencing the Russian economy no less than the low prices for oil," Kudrin said during a press conference.
The former minister also predicted a significant downgrade of Russia's credit rating in 2015.
In recent weeks, Russia has faced a rapid depreciation of its national currency, the ruble. Russian authorities have cited Western sanctions, low oil prices and currency speculation among the principal reasons for the financial problems.
Following Crimea's reunification with Russia, the United States, the European Union and a number of their allies imposed economic sanctions against Moscow, targeting the country's energy, defense and banking. The West has accused Moscow of interfering in the armed conflict in Ukraine. The accusations have been repeatedly denied by the Kremlin.
Last week, US President Barack Obama signed the Ukraine Freedom Support Act, enabling him to impose new sanctions against Moscow at his discretion. The same week, Washington and Brussels introduced sanctions against the economy and some officials of the Republic of Crimea.
