Medvedev: Russia never recovered from '08 collapse

MOSCOW, Dec. 10 (UPI) -- Russia's economy, burdened by sanctions targeting its energy sector and low prices, hasn't recovered from the 2008 crisis, the prime minister said Wednesday.

"Negative trends have been adding up in our economy for the past few years," Russian Prime Minister Dmitry Medvedev told a roundtable of reporters. "In truth, we have not fully emerged from the 2008 crisis."

Russia's economy is burdened by sanctions imposed by Western powers in response to its role in Ukraine, where pro-Russian rebels are jockeying for more control in the eastern parts of the country. Low oil prices, meanwhile, are hurting a Russian economy that depends on oil and gas exports for more than half of its revenues.

Oil prices have shed more than 30 percent of their value since June. The prime minister said that's put pressure in the value of the Russian currency and expectations for gross domestic product.

"When oil fell to a half of what it cost, this certainly weakened the ruble," he said.

Last week, the Kremlin said it expected to economic growth to fall below 1 percent in part because of investment uncertainty and sanctions pressure. Meanwhile, with the value of the Russian currency falling, officials said the budget losses for Russia next year could be as high as $1.7 billion.

"Yes, recovery growth alternated with decline, but the fact is there were signs of crisis in the economy all along," Medvedev said.