Russia to lose $20bn annually due to sanctions

The consequences of the sanctions is about 1% of Russia's potential GDP growth.

It was said by former Russian economic minister Aleksei Kudrin on air of ICTV, UNN reports.

“The impact of the sanctions is about 1% of Russia's potential GDP growth. Speaking about losses, 1% of economic growth is 700 billion rubles per year, or more than 20bn dollars,” Kudrin said.

Russia's minister of economy Aleksei Ulyukayev earlier said an annual inflation of 8.1% and 0.8% economic growth were a “negative combination”.

The European Bank for Reconstruction and Development thinks the new round of sanctions against Russia imposed by the EU in September will be painful for Moscow as it hits the oil sector, the core of the Russian economy.

According to Bloomberg, if the separatists took the Donetsk airport or the city of Mariupol in an effort to create a land corridor to Crimea, the EU might impose additional sanctions on Russia.