Rising oil prices trump Russian sanctions

The Russian economy has been forecast to beat previous predictions and expand this year after rising oil prices overpower Western sanctions.

A sustained rally in oil prices following a squeeze on supply has significantly boosted the Russian economy, which is now predicted to grow by 1.5pc this year.

The European Bank for Reconstruction and Development (EBRD), which is owned by 71 countries and two EU institutions, has revised up its projections from -1.5pc at the time of its May forecast.

Its analysts had expected Western sanctions against Moscow including the price cap on its oil exports to “be more effective in constraining” growth, according to AFP.

“But oil revenues have been supported by rising oil prices and Russia’s ability to offset the impact of the cap by exporting to new markets,” it said.

Oil prices have soared by 30pc since June after protracted supply cuts by the cartel of oil producers, OPEC, and its allies. Crude is now nearing $100 a barrel.