Russian Central Bank Sees Sanctions Until 2017

An exterior view shows the headquarters of the Central Bank in Moscow, September 13, 2013. Credit: Reuters/Maxim Shemetov

Russian Central Bank Cuts Growth Forecasts, Sees Sanctions Until 2017 -- Reuters

(Reuters) - Russia faces the prospect of three years of economic stagnation, the central bank predicted on Monday, underscoring the heavy costs of President Vladimir Putin's Ukraine policies and of Russia's dependence on fragile oil prices.

In an annual monetary policy strategy document, the bank slashed its economic growth forecasts in 2014-16 to almost zero, anticipating that Western sanctions imposed over Russia's actions in Ukraine would last at least until the end of 2017.

It also raised its forecasts for net capital outflows to $128 billion in 2014 and $99 billion in 2015.

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My Comment: A sobering analysis on the Russian economy and the impact of sanctions .... but their prediction of three more years of sanctions is revealing. It tells me that they are expecting the Ukraine conflict to continue to fester for the next few years.