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    Electronic currency exchange board in downtown Moscow. The Bank of Russia has increased the euro's official exchange rate by 2 rubles, this permitting the value of the common European currency to exceed 85 rubles

    Sanctions Slowed Russian Economic Growth by 0.5 PP in 2015

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    Russian Deputy Prime Minister Arkady Dvorkovich said that the total effect can be estimated at 0.5 percentage points of economic growth lost because of sanctions, while three percentage points were lost due to a decline in oil prices.

    HONG KONG (Sputnik) — Russia's economic growth went down by 0.5 percentage points in 2015 due to sanctions, and another 3 percentage points because of plummeting oil prices, Russian Deputy Prime Minister Arkady Dvorkovich said Monday.

    "Sanctions were not as important as oil prices. The total effect can be estimated at 0.5 percentage points of economic growth lost because of sanctions, while 3 percentage points were lost due to a decline in oil prices," Dvorkovich said.

    Earlier on Monday, the exchange rate of the Russian ruble has dipped to 79 rubles against the dollar and 86 rubles against the euro for the first time since December 2014.

    Russia saw an economic downturn in 2014 after the United States and the European Union imposed economic sanctions on Moscow over its alleged involvement in the Ukrainian crisis.

    Another reason for the slowdown of Russia’s oil-dependent economy was a global slump of prices due to the oversupply in the market, exacerbated by the Organization of the Petroleum Exporting Countries’ (OPEC) decision to keep its oil output at the same level.

    In late November 2015, the International Monetary Fund (IMF) said Russia’s economic outlook had been improving, with the country’s economy heading toward stabilization.

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    economy, sanctions, Arkady Dvorkovich, Russia
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