The Organization of the Petroleum Exporting Countries (OPEC) slashed its oil supply forecast for Russia next year and said continued geopolitical uncertainty was limiting its prospects for economic growth.
OPEC, which represents oil-exporting nations, now forecasts Russia will supply 10.51 million of barrels of oil per day (mb/d) on average in 2015, down from the 10.53 million it predicts for 2014.
It also lowered Russia's GDP growth forecast to 0.3 percent in 2014 and 1.1 percent in 2015.
"Continued geopolitical uncertainty is increasingly limiting the prospects for economic growth, amid currency depreciation, high inflation and poor growth in retail sales. The expected second round of EU economic sanctions would make faster GDP growth even less likely," OPEC said in its monthly oil market report published on Wednesday.
Brent Crude
On Monday, the EU adopted fresh sanctions against Russia, including restrictions on the country's large state-owned oil companies operating in Europe. However, the penalties are yet to be imposed, as officials wait to see if the cease-fire agreed between Russia and Ukraine on Friday will hold.
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Russia has become a major player in oil and gas imports, with the energy sector accounting for around 25 percent of its GDP. The county is the principle source of energy for the EU, with Norway its nearest competitor.
Largely on the back of Russia, OPEC cuts its oil supply outlook for next year for non-OPEC countries. Supply is now expected to average 57.16 mb/d.
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—By CNBC's Katy Barnato