“Russia’s economy, facing renewed pressure from plunges in energy prices and the ruble, contracted the most since 2009 last year on oil’s decline and sanctions over the conflict in Ukraine that curbed access to international financing,” Bloomberg reports.
According to preliminary estimates, gross domestic product fell 3.7% after growth of 0.6% in 2014.
Vladimir Miklashevsky, a strategist at Danske Bank A/S in Helsinki, said the following:
The economy’s going through big adjustments — it’s still addicted to oil, (…)
The weak ruble and import substitution will continue to support local production, although…it’s a long journey to recovery.
Hans van Cleef, senior energy economist at ABN Amro in Amsterdam made the following comment about oil prices earlier today:
The oversupply will keep markets depressed and prices low.