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Russian Prime Minister Dmitry Medvedev says country could slide into deep recession

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Russia's economy is at risk of entering a period of deep recession, Russian Prime Minister Dmitry Medvedev was quoted by RIA Novosti news agency as saying.

The quote came a day after Former Russian finance minister Alexei Kudrin said that sanctions over Ukraine, not falling oil prices, were primarily behind the collapse of the rouble and warned that Russia risked seeing its debt downgraded to junk status in 2015.

 "Today, I can say that we have entered or are entering a real, full-fledged economic crisis. Next year we will feel it clearly," the former minister told a news conference. "The government has not been quick enough to address the situation, I am yet to hear, its clear assessment of the current situation." reported Reuters.

Related Read - Russia to enter 'full-fledged economic crisis', says former finance minister Alexei Kudrin

Plummeting oil prices, sanctions over Ukraine, and a flight of investors' capital, made worse by a lack of structural reforms made the economy overwhelmingly dependent on oil revenues. And even if the price of oil rose to $80 per barrel, gross domestic product was still likely to fall by more than 2% in 2015, Kudrin said. At $60 per barrel GDP would decline by 4% or more, he added, echoing the central bank's latest assessment, published last week.

 

 

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