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Late in April 2014,  Head of  International Monetary Fund in Russia  Antonio Spilimbergo officially  announced  that  the  Russian economy had  entered  a recession  phase.

On April 25, 2014, the Bank of Russia desided to lift by 0.5 p. p. the key interest rate to 7.5% from 7% p. a., as well as the entire spectrum of interest rates on instruments designed provide and absorb liquidity.

Standard & Poor’s has downgraded Russia’s long-term foreign exchange ranking on liabilities denominated in foreign currency to BBB- from ВВВ, which a forecast ranking being “negative”. The long-term ranking denominated in the national currency was downgraded to BBB from ВВВ+, with a forecast ranking being “negative” too.

The Federal Law of 20.04.2014, No. 81-FZ On the Amendments to the Second Part of the Tax Code of the Russian Federation makes certain amendments aimed at simplifying tax accounting by approximating the same to bookkeeping.

Minister of Economic Development Alexey Ulyukayev has presented the results achieved in Q1 2014 result, showing that GDP increased 0.8% comparing to the corresponding period in 2013. However, the first quarter saw a decline of 0.5% due to a seasonal factor.

On April 15, 2014, The Ministry of Economic Development of Russia presented its so-called draft version of a mid-term projection of the economic development in Russia including forecast parameters   for the implementation until 2017 of   the Presidential Decrees issued in May 2014.

Stockholm International Peace Research Institute (SIPRI) published its review (Trends in World Military Expenditure, 2013) on April 14, 2014.

The Ministry of Economic Development of Russia has prepared a baseline scenario of macroeconomic projection for 2014–2016 which provides for easing the budgetary rule in 2014, which is determined by growth in budget expenditures in response to the accession of the Crimea as a constituent entity of the Russian Federation.

According to the data provided by the Bank of Russia, the Ministry of Finance and the Federal Treasury of Russia are to resume on April 14, 2014 foreign exchange transactions associated with transferring to the Reserve Fund extra oil and gas federal budget revenues generated at the 2013 year end. Therefore, on April 11, 2014 the Bank of Russia will resume its operations (with the maturity date falling on the following business day) in the foreign exchange market based on the amount of foreign exchange the Federal Treasury plans to buy.

Retail bank accounts and deposits were shrinking at fast rates in Q1 2014.

On April 8, 2014, European Union filed a request to the World Trade Organization (WTO) on undertaking of consultancies with Russian Federation on measures concerning import of pigs, pork, and pork products from the EU member countries.

The initial estimation of Russia’s balance of payments in Q1 2014 was published on April 8, 2014. This helps understand the scope of changes made to the structure of foreign economic operations.

The Ministry of Economic Development of Russia has unsurprisingly changed its official economic growth projection for Russia in 2014. For example, the projected baseline scenario shows that GDP in 2014 is going to grow at a rate of 1.1% rather than 2.5% comparing to the previous year.

A few days ago Rosstat published its revised results of economic growth in Russia in 2013, showing that the Russian economy is facing accelerated growth rather than stagnation or recession.

Industrial enterprises’ labor productivity measurements in Q1 2014 have nearly regained the absolute peak value over six years of monitoring of this indicator.

The recent international events have made it clear that foreign policy may cost dear. Unexpected increase in capital outflow caused by growth in political risks around Russia has given rise to the knock-on effect in the financial market and around.