Lower Oil Prices Sends Russia Careening Toward Recession — Or, Worse

Fortuna's Corner

Lower Oil Prices Sends Russia Careening Toward Recession — Or, Worse

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The news service Reuters, is reporting this afternoon (Dec. 26, 2014), that have “put Russia’s economy on course for a sharp recession next year,” Russia’s Finance Minister said Friday. “Russia’s economy is slowing sharply, as slump Western sanctions over the Ukraine crisis deter foreign investment, and spur capital flight — as the sharp in oil prices severely reduces Russia’s export revenues and pummels the ruble.” Moscow recently raised interest rates to 17 percent, in an attempt to stabilize the ruble; but, analysts are pessimistic on the outlook for both the ruble and the Russian economy,” Reuters said.

Russia’s Finance Minister Anton Siluanov told journalists on Friday, that the Russian economy could shrink by 4 percent in 2015 — it’s first contraction since 2009,” if oil prices remained near the $60 level. West Texas Crude fell today $1.15, or…

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