Russia faces extended recession if oil prices fail to recover

Moscow

FOR an economy that lives and dies by crude prices, the latest downturn in the world oil market means Russia's recession may stretch into next year for the longest slump in two decades.

Russia's first economic slump since 2009 looked like it would plateau as oil gained 40 per cent from a six-month low in January. Crude's recovery has faltered in recent weeks, raising questions about government assurances that the economy will return to growth in 2016 and further squeezing a budget already on course for its widest deficit in five years.