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7/1/14

EU and US Sanctions Had "Chilling Effect" on Russian Economy - by Nigel Wilson

Sanctions imposed on Russia after it annexed Crimea from Ukraine have had a "chilling effect" on its economy, halting growth and threatening to isolate Moscow from the global economy, according to the International Monetary Fund.

In a report on the Russia's economic outlook, the Washington-based fund said it expected Russia's gross domestic product to increase by 0.2% this year.

"Even without the escalation (of the Ukrainian crisis), prolonged uncertainty and the resulting deterioration of confidence could lead to lower consumption, weaker investment and greater exchange-rate pressure and capital outflows than assumed under the baseline," the IMF said in a report.

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