Russia's costs from European and U.S. sanctions are estimated at $20 billion / Image from obozrevatel.com
Russia's costs from European and U.S. sanctions are estimated at $20 billion, Russian Acting Minister of Industry and Trade Gleb Nikitin told Russian TV Channel RBC, according to Russian information agency TASS.
"Losses [incurred by the industry] may reach $20 billion due to rising costs of refinancing in the domestic market and falling short of debt refinancing in foreign markets," Nikitin said.
Nikitin also noted that the sanctions were mainly aimed against the oil and gas industry, and the defensesector, but nevertheless these sectors demonstrated a slight growth.
The peak of negative expectations in the Russian industry has passed, according to Nikitin.
"In June 2015, virtually all industrial branches, except perhaps certain sectors that haven't been in crisis, showed growth – take the chemical industry for example. Other sectors saw growth compared to May. If the seasonal factor isn't taken into account, it means no change from last month. We have moved from recession to stagnation. In this sense, the peak of negative expectations and problems has been passed if there are no additional external shocks and impacts," Nikitin said.
An increase in the number of reported bankruptcies continued in the first quarter of 2015, but the trend has slowed at present, the acting minister said. "We do not observe a large-scale closure of businesses," he said.
However, he noted that anti-crisis measures are also being "developed for the next six months."
The share of imports in the Russian industry has shrunk by 5% in the last six months, he said.