Russia in recession as sanctions bite

WESTERN sanctions on Russia have tipped its economy into recession after Vladimir Putin’s invasion of Ukraine.

Russia’s GDP shrank by 4pc between July and September, after a 4.1pc contraction in the preceding 12 weeks.

The country’s central bank expects the economy to shrink by 3pc to 3.5pc this year, Elvira Nabiullina, governor, said.

Trade embargoes imposed by Ukraine’s allies have choked Russia’s imports of a range of products, from computer chips to financial consultancy services.

The resulting economic contraction has been less than the 10pc drop initially forecast by some analysts earlier this year, however.

While Russian statistics agency Rosstat reported a 22pc drop in wholesale trade for the three months to September, the country’s construction and agricultural sectors both grew by around 6pc, helping offset the impact of the trade war.

Military mobilisations, totalling around 300,000 men, are thought to have affected a third of all Russian businesses.

Some companies reported that drafters for the Russian Army were targeting entire office blocks to meet their conscription quotas.