8 Dec 2022 11:00

Ban on oil exports to Europe, price cap could seriously hurt economic activity in Russia - CBR analysts

MOSCOW. Dec 8 (Interfax) - Europe's ban on Russian oil imports and the price cap on Russian crude could significantly reduce economic activity in Russia, the Central Bank's research and forecasting department said.

"The ban going into effect on seaborne exports of Russian oil and oil products to Europe and the imposition of a price cap on Russian oil stand out among new economic shocks capable of significantly reducing the level of economic activity," the department said in a bulletin on current trends.

The Russian economy in general returned to the phase of stabilization in November after a short negative response to shock in October, the report said. This is partly attributed to an increase in government contracts.