Russian economy falters on lower oil prices

Russia's economic growth fell 3.7% on an annualised basis in 2015, down from a growth rate of 0.6% the year before, according to preliminary data released by the country's statistics office on Monday.

Tax receipts of oil and gas, which account for over 50% of the Russian Treasury’s net takings, were severely dented by a decline in the oil price with Brent futures ending 2015 over 36% lower.

A mixed bag of international sanctions in wake of Russia's annexation of Crimea from Ukraine and lower consumer confidence resulted in retail sales and capital investment declines of 10% and 8.4% respectively; the worst on record since 2009.

Furthermore, its currency - the rouble - fell to record lows against the dollar last week, exchanging at RUR85 to a dollar before recovering. At the close of trading in Moscow, a dollar changed hands at RUR78.87 down 1.1%.

Last month, the government said it was budgeting for an oil price of $50 per barrel, with a revision in stance factored in by most of the market. However, the Russian central bank, due to meet on Friday, is expected to leave benchmark interest rates unchanged at 11%.