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Russian economy faces recession again following Ukraine sanctions

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Anton Siluanov, Russia’s finance minister, says his country is losing $40bn a year over sanctions

Anton Siluanov, Russia’s finance minister, says his country is losing $40bn a year over sanctions

Anton Siluanov, Russia’s finance minister, says his country is losing $40bn a year over sanctions

The Russian economy could plunge into a fresh recession, Anton Siluanov, the country's finance minister, has warned.

"We are losing around $40bn per year due to geopolitical sanctions and we are losing some $90bn to $100bn per year due to oil prices falling 30pc," Mr Siluanov said in a speech in Moscow, reported by RIA Novosti news agency.

Brent - an oil classification which serves as a global benchmark - has already plummeted by as much as 30pc from a peak of $115 a barrel in June.

If the price of oil fell to $60 a barrel and sanctions intensified, the economy would fall into a recession in 2015, Mr Siluanov said.

Russian President Vladimir Putin has previously suggested that the decline in global prices has been engineered by political forces.

"The obvious reason for the decline in global oil prices is the slowdown in the rate of [global] economic growth which means consumption is being reduced in a whole range of countries," he said in early November.

In addition to this, he said "a political component is always present in oil prices. Furthermore, at some moments of crisis it starts to feel like it is the politics that prevails in the pricing of energy resources."

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