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BRIEF

Russia's Monthly Economic Developments

July 13, 2015

Highlights

  • In June, the European Council extended EU economic sanctions against Russia for another six months while Russia extended its food import ban against Western countries for a year.
  • A fluid situation on global financial markets and yet again lower growth prospects led to oil prices losing ground in early July.
  • Ruble depreciation pressure remained throughout June as demand for foreign currency increased while supply declined slightly due to lower oil prices.
  • Russia’s first quarter GDP growth was revised from -1.9 to -2.2 percent−still slightly less than projected earlier−while May high frequency statistics show a deepening recession.
  • On June 25, the government approved the main parameters for the 2016–2018 budgets, foreseeing persistent deficits and evaporating fiscal buffers despite significant expenditure cuts.