New sanctions on Russia could ‘seriously’ impact growth: minister
Economy Minister Alexei Ulyukayev tells TV channel further sanctions by the West over Ukraine could cause Russia's 'economic growth rates go seriously into the negative'
A new round of Western sanctions on Russia over the crisis in Ukraine could seriously impact its already stalled economy, Economy Minister Alexei Ulyukayev said on Saturday.
The minister said Russia has prepared for three possible scenarios in the event of tougher economic sanctions.
The less severe one presumes sanctions on “luxury products, caviar, furs, etc,” while the worst “includes the whole complex: metals, fertilisers, oil, gas, and so forth, taking into account prices and volumes”.
In this case, “economic growth rates go seriously into the negative,” he told the Rossiya television channel, though adding that the economy can still “support” this outcome.
“Investment rates go into more negative territory, incomes decrease, inflation grows, state reserves shrink,” he said.
Ulyukayev’s comments come on the heels of Ukraine’s signing of the Association Agreement with the European Union on Friday, and a decision by Ukrainian President Petro Poroshenko to extend a shaky truce with separatist fighters in eastern Ukraine by three days.
“Investment rates go into more negative territory, incomes decrease, inflation grows, state reserves shrink”