Russian economy falls

Russian economy falls

Russia’s economy contracted by 3.7% in 2015, according to figures published by the country’s statistics service.

The economy has been hit hard by the extraordinary collapse in oil prices, which have fallen by 70% in the past 15 months.

Retail sales plunged by 10% and capital investment fell by 8.4%.

Prime Minister Dmitry Medvedev warned earlier this month that the fall could force Russia’s 2016 budget to be revised.

Anton Siluanov, the Finance minister, reported that the Russian budget could only be balanced with oil at $82 a barrel.

The rouble fell to record lows against the US dollar last week, before regaining some ground as oil prices recovered slightly.

Oil was trading at below $30 a barrel early last week.

Taxes from oil and gas generate about half the Russian government’s revenue.

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