Russia heading for deepest recession since Soviet collapse, UK warns – business live | Business
05:57
UK: Russia heading for deepest recession since Soviet Union collapsed
Russia is heading for its deepest recession since the collapse of the Soviet Union, the UK government has predicted.
Economists expect Russia’s GDP this year to contract by between 8.5% and 15%, the UK says, as it announces sanctions on Vladimir Putin’s two adult daughters.
GDP growth is likely to be depressed over the longer term, as Russia is cut off from Western technology, it adds.
Around £275bn, or 60% of Russian foreign currency reserves, are currently frozen, the UK estimates, which has hampered Moscow’s ability to support its economy.
Foreign Secretary Liz Truss said:
Our unprecedented package of sanctions is hitting the elite and their families, while degrading the Russian economy on a scale Russia hasn’t seen since the fall of the Soviet Union.
But we need to do more. Through the G7, we are working with partners to end the use of Russian…
