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Bloomberg assesses sanctions' damage to Russian economy

Source : 112 Ukraine

The economy of Russia is deprived of about six-percent increase because of the annexation of Crimea and the war in Donbas
08:34, 17 November 2018

Bloomberg

The U.S and EU sanctions led the Russian economy to lose about six percent of growth, according to the result of the research conducted by Bloomberg. 

Considering all negative factors, Russia’s GDP is ten percent less than it was predicted five years ago. Apart from sanctions, Russia’s economy suffers from falling oil prices, the monetary policy of the Central Bank of the Russian Federation aimed at control of inflation at the expense of economic growth, as well as the loss of interest of investors to the economies of developing countries, which led to the withdrawal of inflows. 

Related: Poroshenko urges U.S. and European Parliament representatives to increase sanctions against Russia

Analysts believe that the sanction pressure on Moscow will be increasing and no economic miracle to happen should be expected there. Meanwhile, Russian authorities expect that the GDP will start increasing by three percent annually after 2020. The forecast of the Russian authority for the current year is 1,5-2 percent of the increase. The next year it is expected to slow down because of the increase of the VAT from 18 percent to 20 percent from January 1, 2019. 

Sanctions against Russia have been introduced in 2014 because of the annexation of Crimea and keeping the separatists in eastern Ukraine. Sanctions have been repeatedly expanded ever since, and Russia gives every ground for it. 

Related: U.S. Congress urges Trump to speed up work on sanctions against Russia

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