Concerns that the crisis in Crimea could hit Russia's economic prospects were raised this week by both the World Bank and the country's own economy minister. But it seems that the country's finances were already on shaky ground thanks to frail domestic demand and lack of structural reforms.
The World Bank has forecast the Russian economy could contract by up to 1.8 percent in 2014, depending on the shock to economic and investment activity following the country's annexation of Ukraine's Crimea region this month.
(Read more: Ukraine and IMF announce $14-18 billion bailout)
"Growing tension in Ukraine and Russia since late February has so far caused relatively limited disruption in global financial markets, but escalation of geo-political tension between Russia and the European Union and the U.S. remains a key risk," said the World Bank in its biannual report on Russia on Wednesday.