Russia economy slows as Ukraine crisis bites: official data

(MENAFN- AFP) Russia's economy ministry warned on Monday that growth slowed in the third quarter and could contract in the fourth as the fallout from the Ukraine crisis takes a further toll on the flagging economy.

Growth has slipped slightly to 0.7 percent in the third quarter from 0.8 percent in the second quarter, Oleg Zasov, the head of forecasting at the ministry said.

"We are expecting to see a small contraction in the fourth quarter," Zasov was quoted as saying by Russian news agencies, adding that an overall growth rate of 0.5 percent was still "attainable."

Zasov also said that a slide in the value of the ruble this year has had added about 1.5 to 2.0 percentage points to inflation which has now risen to more than 8.0 percent.

He said the ministry would likely increase its inflation forecast for 2014 from the current 7.5 percent.