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Russia stares at recession as Ukraine crisis scars economy

Published on Apr 20, 2014 12:06 PM

MOSCOW (AFP) - Russia looks increasingly likely to sink into recession in 2014 as the knock-on effects of its standoff with the West over Ukraine hurt an economy already beset by structural problems.

Data released over the last week showed that Russian is beginning to suffer the effects of the worst East-West political crisis since the Cold War.

The threat of economic sanctions from the European Union and the United States has already prompted a massive capital outflow from Russia in the first three months of the year.

But even before the crisis erupted, Russian growth was starting to slow due to internal problems, such as slowing consumer spending, sagging investment and weakening demand for its energy exports.

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