the Russian economy is experiencing the worst recession since 1994, due to the applied sanctions, the decline in GDP in 2022 will be 12%.
It is reported by Ukrinform with reference to the publication.
“According to the internal forecast of the Ministry of Finance (rf – ed.), Russia is facing the deepest economic recession in almost three decades as a result of increased sanctions imposed by the United States and its allies,” the publication reports, citing an internal forecast of the Ministry of Finance.
It is noted that the gross domestic product in 2022 will decrease by 12%, which is more than the 8% drop expected by the Ministry of Economy.
“The main cons are the oil embargo, the EU’s refusal of Russian gas, as well as more foreign companies leaving the country … All this is likely to gradually expand and a lot of negativity will be transferred to 2023,” the publication quotes the chief economist of the financial group. BCS in Moscow to Natalia Lavrova.
Without these factors, and based on current sanctions alone, she forecasts a contraction of 10.8% in 2022 and about 5% in 2023.
As reported, the European Union and a number of other countries of the world imposed sanctions against Russia because of the war in Ukraine. Many companies have announced the termination of work in the Russian Federation and the exit from projects with Russian partners.
The European Union is preparing the sixth package of sanctions against the aggressor. The European Commission has proposed a phased embargo on Russian oil imports to EU countries, since the proceeds from such trade are one of the key sources of replenishment of the Russian budget, which allows the Kremlin to continue the war against Ukraine.