Russian finance minister warns of severe recession next year

Moscow

SLUMPING oil prices have put Russia's economy on course for a sharp recession next year, its finance minister said on Friday, as authorities scaled up the bailout of the first bank to succumb to the country's currency crisis.

Russia's economy is slowing sharply as Western sanctions over the Ukraine crisis deter foreign investment and spur capital flight, and as a sharp slump in oil prices severely reduces Russia's export revenues and pummels the rouble.

The government has taken steps to support key banks and address the deepening currency crisis in the past week, including a sharp and unexpected interest rate hike, but analysts are pessimistic on the outloo…