DAVOS, Switzerland, Jan. 23 (UPI) -- Russian economic woes predate the steady decline in oil prices and sanctions triggered by crises in Ukraine, a Russian minister said Friday from Switzerland.
Russian First Deputy Prime Minister Igor Shuvalov said from the sidelines of the World Economic Forum in Davos the Russian economy never fully emerged from the economic crises that ensnared the global economy in 2008-09.
"We briskly started to lose our rate of growth and it became clear that a structural crisis was looming," he said.
Analysis from the World Bank in December finds the Russian economy will face difficulties through 2016 because of the decline in global oil prices. A January report from the International Monetary Fund said the Russian economy should shrink by 3 percent this year.
"We should understand that Russia has found itself in an extremely difficult situation," Shuvalov said. "Our economic situation is not good; it may get even worse or may stay as it is."
Russia relies on oil exports for more than half of its government revenue. Recent IMF analysis finds oil exporting countries should find their economies shrinking steadily in the mid-term.
Western sanctions imposed in response to the Kremlin's policies on Ukraine have caused further damage to the Russian economy.
Russian Prime Minister Dmitry Medvedev last week called all government hands to the deck to help the economy regain momentum, describing the current situation as "quite problematic." This week, Russian President Vladimir Putin said the situation required renewed emphasis from Kremlin officials.
