Russian economy slows amid Ukraine crisis

Russia's economy minister says growth slowed to 0.8% in the first quarter due to uncertainty over the crisis in Ukraine. More capital left the country in the first three months of 2014 than in all of 2013.

Russia's economy minister says growth slowed to 0.8% in the first quarter due to uncertainty over the crisis in Ukraine.

HT Image

Alexei Ulyukayev told parliament Wednesday that the situation had worsened because of "the acute international situation of the past two months," as well as "serious capital flight."

More capital left the country in the first three months of 2014 than in all of 2013.

The figure fell far short of the ministry's earlier prediction of 2.5% growth.

Russian markets have been rattled by tensions between Moscow and neighboring Ukraine, where Russia annexed the Black Sea region of Crimea in March.

Ukraine has accused Russia of supporting armed militants in the country's east, where pro-Russian activists have seized government buildings and police stations.