Deep recession about to hit Russia

Russian Prime Minister Dmitry Medvedev said at a session of the Supreme Council and the General Council of the United Russia Party that executives will need to react to many ordeals swiftly to avoid an even deeper recession. Mikhail Khazin, the president of Neocon, noted that the crisis in Russia was not sudden and had been anticipated by two years of recession. About 12-15% of the GDP will be lost, he believes. The full scale of the crisis will be seen in about mid-February, Khazin predicts.

Vladimir Klimanov, the head of the state regulation of economy subdepartment of RANEPA, admitted that a crisis has started. He said that the situation was comparable with that of 2008. Experience in 2009 proved that recession will inevitably result in losses, failures of investment programs. Pensions and social payments will be increased in 2015 according to inflation rates.