Russian economy ministry sees 2015 GDP contracting 3 per cent

A general view of the Bashneft-Ufaneftekhim oil refinery is seen outside Ufa, Bashkortostan on Jan 29, 2015. Russian Economy Minister Alexei Ulyukayev said the ministry sees the country's economy shrinking 3 per cent in 2015 and inflation of 12 per c
A general view of the Bashneft-Ufaneftekhim oil refinery is seen outside Ufa, Bashkortostan on Jan 29, 2015. Russian Economy Minister Alexei Ulyukayev said the ministry sees the country's economy shrinking 3 per cent in 2015 and inflation of 12 per cent by the end of the year, the Interfax news agency cited him as saying on Saturday. -- PHOTO: REUTERS 

MOSCOW (REUTERS) - Russian Economy Minister Alexei Ulyukayev said the ministry sees the country's economy shrinking 3 per cent in 2015 and inflation of 12 per cent by the end of the year, the Interfax news agency cited him as saying on Saturday.

Earlier, the minister said it was basing its macroeconomic forecast scenario at an average price of oil, Russia's chief exports, of US$50 (S$62.52) per barrel.

Ulyukayev also said that Russia is likely to see some US$115 billion in net capital outflow this year.

Capital investment - cash invested in firms' tangible goods such as building and infrastructure - is likely to fall by 13 per cent this year and retail sales by 8 per cent, he said.