The Russian economy is performing better than expected in the face of persistent external challenges, supported largely by export revenue from fossil fuels, OPEC economists said Thursday.
Russian Central Bank President Elvira Nabiullina said inflationary risks have increased dramatically, which is influencing the price of Russian exports of everything from natural gas to coal and crude oil.
“A further worsening of external conditions, including a potential tightening of the sanctions, is yet another material risk,” she added.
Economists at the Organization of the Petroleum Exporting Countries said in the group’s monthly market report for August that Russia’s economy is nevertheless performing better than expected.
“The repercussions of the Eastern European conflict are apparent in indicators such as industrial production and exports,” they wrote. “Nonetheless, the broader recovery seems to have remained intact, supported by robust revenues from the hydrocarbon sector and encouraging domestic demand trends.”