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Ukraine set for deep recession in 2014

Warsaw - Crisis-hit Ukraine will slump into deep recession this year, with Russia's economy facing stagnation, the EBRD development bank forecast on Wednesday at its annual meeting in Warsaw.

Ukraine's economy will shrink by 7.0 percent in 2014 and then stagnate in 2015, the European Bank for Reconstruction and Development forecast, shredding its previous 2014 growth estimate of 1.5 percent.

Local villagers inspect a destroyed Ukrainian army armoured personnel carrier in the eastern Ukrainian village of Oktyabrskoe May 14, 2014. Pro-Russian separatists ambushed Ukrainian troops on may 13, killing seven in the heaviest loss of life for government forces in a single clash since Kiev sent soldiers to put down a rebellion in the country's east. Credit: Reuters

Neighbouring Russia was meanwhile set to post zero economic growth this year, before expanding by just 0.6 percent in 2015, the London-based institution added in a statement. - Sapa-AFP

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