China has become one of Russia’s main trading partners over the past ten years, leading to a significant diversification of Russia’s oil and gas export markets.

Russia imposed strict lockdown measures similar to many countries, resulting in sharp reductions in demand and production.

Several reforms improving banking and financial market regulation as well as supervision have been put through since summer 2013.

The Bank of Finland forecasts a 3% contraction in Russian GDP in 2016. This is due to the export price shocks Russia has had to face.

The Russian economy has begun to contract due to the fall in the price of oil. GDP will contract by over 4% in 2015. The uncertainty will cause a decline in investment, and consumption will be cut particularly by rapid inflation. Imports will be reduced by the contracting economy, a weak rouble and declining export income.