The International Monetary Fund has slashed its growth forecast for Russia and warned of wider economic fallout if the Ukraine crisis escalates.
Russia’s oil-rich economy will grow by 1.3% in 2014, according to the IMF. That compares with its January forecast of 1.9%.
Other forecasters, including the World Bank and some in the Russian government, expect a much weaker outcome due to a flight of capital and an emergency interest rate hike aimed at drawing the inflationary sting of a sharp devaluation of the ruble.
The currency is down 8% against the dollar so far this year, and Russia’s main stock exchange index has fallen more than 10%.