Russia's economic growth has been slowing since the first quarter of 2012 when it advanced 4.8 percent. The preliminary estimates came slightly better than a 1.2 percent estimate released last month by the Economy Ministry.
In July, The International Monetary Fund has downgraded Russia’s economic growth forecast to 0.2% from 1.3% for 2014 and to 1% from 2.3% for 2015 due to weakening domestic demand amid rising geopolitical tension.
The ruble depreciated almost 10 percent against the US dollar since the beginning of the year. As a result, the central bank already increased rates three times this year to 8 percent, aiming to curb inflationary pressures from a weakening currency.