$60 Oil Would See Russia's Economy Shrink 4.5 Percent Next Year – Central Bank

Dec 15, 2014 — 19:44
The Central Bank said Monday that inflation could peak at 11.5 percent early next year.

Russia's Central Bank said Monday that it was likely the economy would contract in the first quarter of next year and perhaps by around 4.5 percent in 2015 as a whole if oil prices average $60 a barrel.

The bank also said in a monetary policy document that capital outflows in the fourth quarter would rise to levels comparable with those in the first quarter and forecast significant outflows for the next three years.

The outlook for Russia's economy has darkened considerably since the summer, as falling oil prices, Western sanctions over Ukraine and a slowdown in capital investment have pushed the country toward recession.

A major casualty has been the ruble, which is down some 45 percent against the dollar so far this year.

The Central Bank has also had to hike its main lending rate by a cumulative 5 percentage points in response to market turmoil linked to the Ukraine crisis.

The Central Bank said Monday that inflation could peak at 11.5 percent early next year and that reaching its mid-term inflation target of 4 percent by the end of 2017 would require keeping monetary policy tight next year.

The bank predicted capital outflows of around $120 billion next year, $75 billion in 2016 and $55 billion in 2017.

Theater

Pushkin’s Fairy Tales

Renowned theater director and visual artist Robert Wilson interprets Pushkin.

Tue. May. 30 Mon. Jun. 12

Renowned theater director and visual artist Robert Wilson interprets Pushkin in his first production in Russia. The performance is based on five of the best-known fairy tales by Alexander Pushkin, Russia’s greatest poet: “The Tale of Tsar Saltan,” “The Tale of the Fisherman and the Fish,” “The Tale of the Priest and of His Workman Balda,” “The Tale of the Golden Cockerel,” as well as his more obscure story, “The She-Bear” and excerpts from “Ruslan and Lyudmila.” CocoRosie, an American duo, pioneers of “freak folk,” wrote the music for “Pushkin’s Fairytales” and that’s half of its success. The other half is the incredible visual imagery Wilson created after extensive research into Russian culture and traditions. Yevgeny Mironov, the theater’s artistic director, plays the storyteller, aka Pushkin, in what is one of his most memorable roles. Read more

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