Russia's economy shrank by 2% in Q1, says PM Medvedev

Moscow

PRIME Minister Dmitry Medvedev on Tuesday estimated that the Russian economy shrank by 2 per cent in the first quarter due to sanctions pressure and low oil prices.

If confirmed, that would be the first quarterly contraction since 2009. Mr Medvedev warned lawmakers the situation could worsen further, in contrast to President Vladimir Putin, who said last week the worst of the economic crisis had passed.