Russian economy News

The White House has announced additional financial sanctions Thursday aimed at people in President Vladimir Putin's inner circle, and the State Department said it was imposing travel bans on 19 Russian oligarchs and dozens of their family members and associates.

The decline of Russian economic growth is further exacerbated by plummeting crude oil prices that dropped 53 per cent between January and May.In 2020, overall household consumption is expected to shrink by 4.9 per cent and gross fixed capital investment by 8 per cent.

  Russian President Vladimir Putin says Western sanctions against Russia haven't worked and both Moscow and the West would benefit from lifting them.

The ruble hit a historic low on Wednesday as the dollar climbed past the 80.1 rubles level for the first time, exceeding the levels seen during the dramatic plunge of the Russian currency in December 2014.

An end to Russia's recession would imply an increase in GDP in the third quarter over the second, but Ulyukaev offered no quarter-on-quarter figures.

Russia's economy shrank 4.1 percent in the third quarter this year, official statistics showed today, as a recession caused by low oil prices and Western sanctions over Ukraine continued to take its toll.

Russia is expected to see a positive growth of 2.3 percent in its economy next year, a leading Russian official has said.

The World Bank on Monday said it saw some improvement in Russia`s battered economy, predicting it would shrink by 2.7 percent this year and return to growth of 0.7 percent in 2016.

The International Monetary Fund on Thursday announced a less pessimistic forecast for Russia`s economy, predicting no more than 3.4 percent contraction in 2015 and emergence from recession in 2016.

Russian President Vladimir Putin said Tuesday the country's economy was not in crisis and that the worst was over, as the central bank is set to meet this week to decide whether to lower the interest rate following the ruble's rebound.

President Vladimir Putin said Thursday the worst was over for Russia`s crisis-hit economy as he shrugged off widespread concerns over the impact of the Ukraine crisis in his annual phone-in.

Inflation-weary Russians saw the price of fruit and vegetables increase by 22 percent in January, the government said Wednesday, increasing pressure on households already reeling from an economic crisis.

Russia announced a $35 billion "anti-crisis" spending plan on Wednesday to bail out an economy battered by Western sanctions and falling oil prices, but gave few details of the deep cuts it said would be enacted this year to pay for it.

Moscow said S&P`s downgrade to `BB+` was motivated by the West`s current standoff with Russia over Ukraine.

The Russian government is preparing to launch an "anti-crisis programme" to tackle the country's stalled economy at the cost of 1.375 trillion rubles (USD 21 billion), deputy prime minister Igor Shuvalov said.

Russia`s battered economy will shrink by a far worse-than-expected 4.8 percent this year, as plunging oil prices add to fallout from the Ukraine crisis, the EBRD development bank forecast Monday.

Russia`s second largest bank VTB said Tuesday it has received 100 billion rubles ($1.8 billion) from the country`s national welfare fund, part of a plan to recapitalise the banking system hit by the falling ruble and Western sanctions.

Russia's economy shrank sharply in November and the rouble resumed its slide on Monday as Western sanctions and a slump in oil prices combined to inflict the first contraction in GDP since the global financial crisis.

Finance Minister Anton Siluanov said on Friday Russia`s economy could suffer a 4-percent contraction next year and see a budget deficit of 3 percent.

President Vladimir Putin on Thursday sought to allay fears over the worst financial crisis of his 15-year-rule, saying the Russian economy would rebound in two years at most.