Declining economic activity and oil revenues in Russia are adversely affecting its regional neighbor (8/3/2016)

The Russian economy, already weakened by the imposition of Ukraine-related sanctions by the United States and the European Union, has been further damaged by low crude oil prices since the end of 2014. In 2015, Russia was the world's second-largest producer of petroleum and natural gas, and the oil and natural gas sector accounted for approximately 8% of Russia's gross domestic product (GDP), according to IHS Markit. However, in conjunction with both lower oil prices and international sanctions, Russia has recently experienced five consecutive quarters of decline in GDP, representing that country's deepest economic downturn since 2008-09. While consumers in many countries are benefiting from lower oil prices, declines in Russian economic activity are also having an adverse effect on economic growth in many neighboring countries by reducing remittances from migrant populations working in Russia. ... More »