(MENAFN) Government officials said that Russia's economy is set to enter recession next year, changing a previous forecast of a growth of 1.2 percent, The Peninsula Qatar reported.
The dramatic change is caused by low oil prices and sanctions that are imposed on the country over the Ukrainian crisis, Russian Deputy Economy Minister said in a statement.
The deputy said gross domestic product (GDP) is likely to fall by 0.8 percent next year. The ministry cut its forecast for the average oil price by USD20 to USD80 per barrel in 2015.
"We now assume that sanctions will remain in place throughout the whole of 2015. This for us means closed capital markets for the majority of Russian companies and banks," the deputy said.
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