IMF says Russia’s economy faces further losses if sanctions remain

The IMF's outlook for Russia:

• Says Russia's economy faces the loss of as much as 9% of its inflation-adjusted value of goods and services it produces if Western sanctions and Moscow's retaliatory measures remain in place in the medium term
• "The external shocks, added to pre-existing structural weaknesses, are certainly weighing on Russia's growth prospects," Ernesto Ramirez Rigo, IMF mission chief for Russia, said in a report.

IMF kept its 2015 economic outlook unchanged from May:

• Expects the economy to contract 3.4% this year before returning to growth in 2016
• More pessimistic than the government's forecast that gross domestic product would shrink by as much as 3% this year and would grow by more than 2% in 2016

In the longer run, the IMF said it expects Russia's economy to grow 1.5% a year because of slow progress in implementing structural overhauls.

More at the Wall Street Journal: IMF Says Sanctions Take Toll On Russia

(Journal article may be gated)