GORKI (Moscow Region), January 12 (Sputnik) – Russia’s economic situation is “quite problematic,” Russian Prime Minister Dmitry Medvedev said Monday.
“The economic situation is quite problematic to say the least. Therefore, all of the members of the government must hold key meetings in the areas that they coordinate, as we have already agreed,” Medvedev said during a meeting with his deputies.
On December 23, Medvedev said the Russian economy was in risk of falling into a deep recession, noting that the government may need to take a more active approach to address the difficulties.
Russia's economy is currently suffering due to a sharp decline in oil prices, with the country's budget being largely dependent on energy exports. The fall in prices was triggered by the decision of the Organization of the Petroleum Exporting Countries (OPEC) not to cut oil production.
Moreover, the Russian economy is feeling the impact of current geopolitical tensions and the Western sanctions that were imposed on Moscow over its alleged involvement in the Ukrainian crisis, although Moscow has repeatedly denied these claims.
As a result, the Russian ruble has plummeted drastically recently, hitting historic lows. Russia's Central Bank predicts a 10-percent inflation rate in the first quarter of 2015, and the country's GDP will decline by 0.8 in 2015, according to the Russian Ministry of Economic Development.
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