Russia's economy may continue declining due to the recent Kremlin’s accusations alleging "Ukraine staged attacks" in the occupied Crimea, reported Bloomberg citing the surveyed economists.
52% of the experts see the European Union beginning to lift its penalties this year. That’s down from 69 percent in the previous survey.
In turn, Only 10 percent expect the U.S. to start removing its sanctions, down from 19 percent a month ago. In addition, 76% of economists believe that investor confidence in Russia will also be on the way down. The experts forecast a capital outflow to reach 62.
Increasing Ukraine tensions will undermine investor confidence, keep EU and U.S. sanctions in place and further put off foreign capital flows, as Putin will not be focused on economic reforms. This will weaken the ruble and force the central bank to adopt a more cautious, hawkish tone. said Christopher Shiells, a senior analyst at Informa Global Markets, said one of the experts.
Earlier, the FSB spread a statement saying it prevented the terrorist acts in the Crimea, allegedly prepared by the Head Intelligence Office of the Ukraine’s Defense Ministry.In particular, the Russian security services said they disclosed in the city of Armyansk a group of saboteurs who killed a Russian FSB officer when being detained. In addition, the FSB announced the "liquidation of the Ukrainian intelligence network".
The fake statements also say the "subversive and terrorist groups tried to break" in the peninsula.
The Intelligence Directorate with the Ukraine’s Defense Ministry said charges of the Russia's FSB are fake. The Russian security services say the "sabotage" in the annexed Crimea was arranged by a former Ukrainian military Vladimir Serdyuk.