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Russia losing $140 billion from sanctions and low oil prices

Russia losing $140 billion from sanctions and low oil prices
26.11.2014 12:00
(CNN) - Russian President Vladimir Putin received a high-ranking black belt in karate Friday, but his master fighting skills haven't been enough to fend off economic troubles.The country is losing up to $140 billion per year because of falling oil prices and sanctions with Western nations, according to estimates from Russia's finance minister Anton Siluanov.Siluanov said in a speech on Monday that falling oil prices were causing the most damage -- leading to $90 billion to $100 billion in annual losses. Russia, which is a major oil exporter, has suffered immensely as oil prices have fallen by roughly 30% since hitting a recent peak in June.Meanwhile, Western sanctions are expected to lead to another $40 billion in annual losses, said Siluanov.The U.S., Europe and other major nations came together this year to slap trade sanctions on Russia for its role in the Ukrainian crisis. Russia responded by banning various food imports from these nations, which has hurt many European food exporters and crimped global business sentiment.Siluanov had previously spoken out about his government's struggles with lower revenues and talked about cutting spending by 10%.In October, he said Russia is living in an "alternative economic reality" by budgeting as if oil is still trading at $100 a barrel. (In fact, oil has been trading at or below $80 for much of the autumn.)Bakudaily.Az
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