“After experiencing some growth resilience in 2014, Russia is expected to move into a deep recession in 2015, followed by some stabilization in 2016, as geo-political tensions are assumed to gradually subside and the oil price to slightly pick up,” the forecast says.
The forecast also predicted the contraction of investment and a reduction of imports in 2015 "on the back of falling domestic demand and sharp Rouble depreciation.”
In the past few months, the ruble has lost about half its value against the US dollar. Russian authorities have cited the sharp decline in oil prices and Western economic sanctions, imposed on Moscow over its alleged interference in the Ukrainian crisis, among the reasons behind the country's economic problems. Crude exports make up a significant portion of the Russian budget's revenues.
According to International Monetary Fund estimates, the Russian economy is expected shrink by 3 percent in 2015.
In December, Russian President Vladimir Putin assured that the Russian economy would soon recover despite the current difficulties.
