The International Monetary Fund has warned that the Russian economy will suffer greatly from the sanctions imposed by the West on Russia due to the invasion of Ukraine: the country’s inflation rate questyear will exceed 20% and its cash resources will decline sharply in future due to the decline in its oil and gas exports, which are currently offset by high prices.
“In Russia, unprecedented sanctions and uncertainty will cast a strong shadow on investment and exports, as well as lead to a decline in imports and private consumption,” the fund said. in a report Friday.
The International Monetary Fund stressed that the energy sector, the “backbone” of the Russian economy, is still today spared from sanctions.
But the report warns that “there are indications that Russian energy exports are decreasing in the market”, noting that “most importantly, Germany and many EU countries have already begun to separate their economies from Russian energy sources. “.
According to estimates by the International Monetary Fund, between 60 and 70% of the current demand for Russian oil and natural gas could disappear in the next few years, “which will force Russia to diversify its exports to other regions”.
In an update of its economic forecasts, released on Tuesday in occasion of the spring meetings, the Fund claimed that the Russian gross domestic product questyear will shrink by a whopping 8.5%.
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