Russia will slowly recover in the coming year but cheap oil and sanctions continue to weigh on the country's economic outlook along with Moscow's "slow progress" in implementing structural reforms, the International Monetary Fund has warned.
Russia's economy is expected to contract by 3.4 percent in 2015, "although growth should return in 2016," the Fund said. The country's recovery next year would be supported by the ruble's more competitive exchange rate, increasing external demand and normalization of domestic financial conditions, it said.
"However, investment and consumption are likely to remain sluggish and the effects of sanctions in terms of external access to financial markets and new investment technology will linger. IMF staff expect weak GDP growth of around 1.5 percent in the medium term," the report noted.