The Russian economy takes a time-out.

The beginning of the year didn’t emphasize any positive trends for the national economic recovery. The GDP of our country increased only 0.8 % in the first quarter of 2014 according to Minister of Economic Development of the Russian Federation Alexey Ulyukaev. Its deceleration began 2 years ago. Following the results of the fourth quarter 2011 the GDP reached its maximum growth, 5.2 %,so far after the financial crisis 2008. Today we are behind the situation when over the last 6 quarters the Russian economy trends to reach the GDP growth rate at the very least of 2%.

The last events in Ukraine and Russia’s actions in connecting Crimea caused greater capital outflow and political sanctions of series of countries, the USA and EC above all, decreased the Russian investment climate. As a result, leading international financial institutions considered the idea of reducing its GDP trend figure in 2014.

Russian departments are also under no illusions. For instance, the Ministry of Finance of the Russian Federation expects the GDP growth of 0.5%, Ministry of Economic Development -0.5% - 1.1%, and there can be even its decreasing in summer season.

Russian GDP growth by quarter, %

If there will be no noneconomic shocks, this negative trend should be changed. There is a gradual economic recovery of the leading global economic drivers such as EC and the USA. Furthermore, the greatest infrastructural projects realizations in Crimea, as well as a number of agreements with China of foreign trade interaction expansion which includes energy resources export are high on the agenda.