Moody's forecasted deepening recession in Russia

Falling oil prices and the weakening of the ruble increases the risk that the recession in Russia will deepen and the recovery in 2016 will be delayed, the analysts said Moody's Investors Service.

Analysts say that Rosstat published data on macroeconomic statistics for the second quarter indicate that the Russian economy "is officially in a recession."

Moody's predicts a slowdown of the Russian economy by 3% in 2015, followed by zero growth in 2016.

Sanctions against Russia effectively cut off access to Russian banks and companies to international capital, the report said. According to the International Monetary Fund, the sanctions and the embargo cost the food economy of Russia in the last year of 1-1.5% of GDP, and this annual effect will continue until 2020.

The decline in oil prices, the ruble has been dropped by more than 20% can lead to a new surge of inflation, destroying income investments and strengthening the recession deepening recession, analysts said the rating agency.

According to Rosstat, in the second quarter decline in GDP has increased more than doubled - to 4.6%.

Now Russia's credit rating by Moody's at the level of Ba1 with a negative outlook.

glavcom.ua In Russian